Local Government Pension Scheme Pre Retirement Course Local Government Pension Scheme

Local Government Pension Scheme All types of retirement including flexible retirement are calculated in the same way Any queries regarding the grounds for your retirement must be referred to your employer

When can I retire? Normal Pension Age (NPA) – previously 65, now the higher of 65 or new state pension age Voluntary retirement – possible from age 55 without employers consent but may be subject to reductions if before NPA Permanent ill health – any age

What LGPS benefits are payable? Annual Pension (payable for life) For membership up to 31 March 2008 1/80 x scheme membership x final pay For membership between 1 April 2008 and 31 March 2014 1/60 x scheme membership x final pay For membership from 1 April 2014 1/49 of pensionable pay is credited to your pension account each year

What LGPS benefits are payable? Lump sum retiring allowance For membership up to 31 March 2008 3 x annual pension For membership from 1 April 2008 no automatic lump sum but can exchange part of the pension to provide a tax free lump sum. For every £1 pension given up an additional £12 lump sum will be provided. Certain restrictions will apply You must elect to convert before your last day of service otherwise you may not be allowed to convert

Can I request an estimate? If you are retiring with immediate payment of your benefits you need to request an estimate Requests must be made directly to your employer An estimate can be provided up to 6 months before your date of retirement Only one estimate can be requested per year Any AVC options will be provided with your estimate Processed up to 20 working days from receipt of employers request

How will my benefits be paid? Complete Retirement Declaration form giving instructions to your employer Lump sum will be processed within 20 working days of receipt of all the information from your employer. It will be paid to your bank account or building society account Pension paid monthly in arrears on last working day of month paid to your bank/building society account Payslip only sent if pension differs by £3 or more from previous month or tax code change

What about Income Tax? Lump sum from pension fund is tax free providing you do not exceed your Lifetime Allowance. Any non fund lump sums, i.e. Redundancy payments greater than £30,000 excess is taxable Pension is income and will have tax code applied Any queries to tax office in Liverpool

How is my pension increased? Her Majesty’s Treasury agrees the percentage of pensions increase in April each year in line with Pensions Increase legislation If on pension for less than a year increase will be pro rata

What benefits are payable when I die? Spouses and civil partners are entitled to benefits – these are payable for life even if they remarry or cohabit For those members with service on or after 1 April 2008 eligible cohabiting partners are entitled to a survivor’s pension providing certain criteria have been met A lump sum death grant may be payable after retirement depending on individual circumstances Dependent children’s pensions – may be payable

Other options available It is possible to remain in employment beyond the normal pension age and continue paying into the pension scheme until age 75 You may become re-employed and rejoin the pension scheme If you voluntarily retire you can defer your benefits until age 75

Contact us Our email address is pensions@kent.gov.uk Please note that the contact telephone number for the Pension Section is 0300 041 3488 Our email address is pensions@kent.gov.uk Our website address is www.kentpensionfund.co.uk