Taking my benefits

Your normal pension age is to the same as your state pension age (with a minimum of age 65). Your Normal Pension Age is the age from which you can retire and receive your pension in full, without it being reduced for early retirement.

You can check your Normal Pension age by looking up your current State Pension Age at www.gov.uk/calculate-state-pension.

You can also take your benefits before or after your normal pension age from as early as 55* or as late as 75.

* The government has announced that the normal minimum pension age will increase to age 57 from 6 April 2028. The details of how this will work for the LGPS are still to be confirmed - however the government has proposed that people who were LGPS members before 4 November 2021 will remain able to take their pension from age 55 after the changes are made.

It is also possible to take your deferred benefits at any age on the grounds of ill health. But this must be approved by your former employer, and you will not be awarded any enhancement.

Before determining whether to agree to a request for your pension to be put into payment on ill-health grounds your old employer must obtain a certificate from an independent registered medical practitioner qualified in occupational health medicine. This must state that in their opinion you are permanently incapable of discharging efficiently the duties of your relevant employment because of ill-health or infirmity of mind or body and, if so, whether that condition is likely to prevent you from obtaining gainful employment (whether in local government or otherwise) before you reach your normal retirement age, or for at least three years, whichever is the sooner.

If you think payment of deferred benefits on the grounds of ill health could apply to you please contact your former employer.

If you have less than 2 years’ Scheme membership (including the length of any transferred in service) and do not have other LGPS memberships you can apply to get a refund of your contributions.

Only your own contributions are refundable, those paid by your employer are not. There will be deductions to account for tax relief and, if applicable, National Insurance.

If you want to transfer your LGPS pension out you should tell your new scheme that you hold benefits within the Scheme.

·         They will approach us for a transfer value and let you know what the benefits are worth in their scheme.

·         Your new employer or pension scheme will then work with you regarding whether you wish to go ahead with the transfer.

·         If you decide that you want to go ahead with the transfer, they will ask us to make a transfer payment to your new pension scheme.

·         There may be time restrictions in place. Check with your new scheme as soon as you join.

Deciding to transfer your benefits is an important decision. You may wish to take independent financial advice and there may be circumstances where you are required to take independent financial advice (see below).

An option to transfer your benefits (other than AVCs) must be made at least 12 months before your normal pension age. The following points should be borne in mind if you are considering transferring out:

·         You cannot transfer out your LGPS benefits if you are receiving an LGPS pension at the same time.  For example, if you are receiving an LGPS pension but also have a separate LGPS deferred benefit (a benefit you have built up but not yet begun to receive), you cannot transfer out the deferred benefit.

·         If you are transferring out, you must transfer out all of your LGPS benefits at the same time.  You cannot transfer out one deferred benefit and leave another in the LGPS.

·         If a full transfer payment is made you will not be entitled to any further benefits from the LGPS for yourself or any eligible survivors.

You can transfer your LGPS pension to an overseas pension scheme if it meets certain conditions set by HM Revenue and Customs.

You will also find relevant details on the national website for members of the LGPS in England and Wales.

What do I need to be aware of?

If you are thinking about transferring your LGPS benefits to a defined contribution pension scheme and the value of that transfer is over £30,000 you must receive advice from a qualified independent financial adviser who is qualified to advise on pension transfers before you can transfer. We will require written evidence that you have received this advice before we will pay out any transfer value of your benefits.

The Government has set up an information service called Pension Wise on the MoneyHelper website. This is a free and impartial service that offers guidance to consumers about the options they have in relation to their pensions. They can help you understand the Government’s reforms and the options you have as an LGPS member.

You will be responsible for arranging and paying for any independent financial advice you receive. You can find an independent financial adviser in your area at www.unbiased.co.uk. 

Beware of pension scams

Should you decide to transfer your benefits, you should be aware of potential pension scams. Educating yourself and remaining vigilant are key to minimising the risk posed by pensions scams.

Listed here is a summary of the warning signs the Financial Conduct Authority's (FCA) have highlighted to help people identify if they may be at risk of being scammed:  

• Is it unexpected? Scammers often call out of the blue. They may also try and contact you via email, text, post, social media, or even in person.
• Do you feel pressured to act quickly? Scammers might offer you a bonus or discount if you invest quickly, or they may say the opportunity is only available for a short time.
• Does the offer sound too good to be true? Fraudsters often promise tempting rewards, such as high returns on an investment.
• Is the offer exclusively for you? Scammers might claim that you’ve been specially chosen for an investment opportunity, and it should be kept a secret.
• Are they trying to flatter you? Scammers often try to build a friendship with you to put you at ease.
• Are you feeling worried or excited? Fraudsters may try to influence your emotions to get you to act.
• Are they speaking with authority? Scammers might claim that they’re authorised and often appear knowledgeable about financial products.

If you answered ‘yes’ to any of these questions, use the FCA Firm Checker or Contact the FCA to obtain more assurance.

You can choose to take your deferred benefits after your normal pension age but you must take them before you are 75.

If you take your benefits after your normal pension age, your benefits are increased because they are starting later than expected.

You and your partner will need to consider how to treat your pension as part of any divorce/dissolution settlement.

Please contact us for more information.

As a member of the Scheme you have valuable life cover, which for most members includes a lump sum paid on your death. If you have not completed an Expression of Wish form setting out your payment preferences, or if you would like to make any changes following a previous Expression of Wish, you can find a template form on our 'Resources' page.