Defined Benefit Pension Transfer

Local Government Pension Scheme (LGPS)

Do you have an old Local Government Pension Scheme (LGPS) you are thinking about transferring into a more flexible arrangement?

Below is a general overview of what the scheme benefits are, these might vary from member to member, depending on what category you belonged to.

If you would like to find out if transferring your pension is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free initial consultation.

Local Government Pension Scheme (LGPS)

Disclaimer

The information we provide here is our understanding of the pension scheme and may not be the latest, there may also be some detail missing. It is provided in good faith as an overview of the details we hold. There has not been any endorsement or otherwise of these details by the pension scheme, their sponsoring employer or scheme administrators.

This is a partial summary of the complex benefits provided through potentially many schemes, where retirement options can be very different within the same scheme or the same individual sections of those schemes.

If you are either a current or deferred member of the pension scheme and wish specific information about your personal benefits, the scheme administrator will need to be contacted.

Overview

Administrator: LGPS.

The LGPS is administered locally by 86 local pension funds in England and Wales. Using the website below and entering the region and pension fund name, this will provide contact details.

Website: https://www.lgpsmember.org/contact-your-fund/

Scheme Retirement Age:

Normal Retirement is age 67, however for benefits built up prior 01/04/2014 members have a protected NRA for these benefits of 65. If you were member of LGPS any time between 01/04/1998 and 30/09/2006, some or all the benefits could be paid in full before age 65 if they are protected by the 85-year rule.

The 85-year rule is when the member age and length of LGPS membership add up to 85. This will apply if you are over age 60 hen you retire. This is a discretion.

Are partial transfers allowed? No.

Scheme Funding Position: Unknown.

Revaluation:

For the period after your date of leaving, the total excess deferred will be increased in line with the cost of living and any GMP will increase by Section 148 orders.

Escalation:

Your pension will increase in line with the cost of living (Consumer Price Index) each April.

Flexible Options

You have the option to elect either a full pension together with a lump sum or a higher lump sum together with a reduced pension.

Death in Deferment

Your spouse, civil partner or eligible cohabiting partner will receive part of the member’s pension. It will be paid for the remaining life of the spouse and is calculated as:

  • 50% of the pension you built up before April 2008.
  • 37.50% of the pension you built up between April 2008 and March 2014.
  • 30.625% of the pension you built up from April 2014.

The lump sum death grant payable depends on when you left:

  • if you left after 31/03/2008 – 5 times your deferred pension is paid.
  • if you left before 01/04/2008 – 3 times your deferred pension is paid.

Death in Retirement

Your spouse, civil partner or eligible cohabiting partner will receive part of the member’s pension based on the pension before giving up pension for tax-free lump sum and before any reductions or increases for early or late payment. It will be paid for the remaining life of the spouse and is calculated as:

  • 50% of the pension you built up before April 2008.
  • 37.50% of the pension you built up between April 2008 and March 2014.
  • 30.625% of the pension you built up from April 2014.

The lump sum death grant payable depends on when you left:

  • if you left after 31/03/2008 – 10 times your pension provided you are under age 75 less the pension and lump sum that has been paid to you.
  • if you left before 01/04/2008 – 5 times your deferred pension provided you are under age 75 less the pension and lump sum that has been paid to you.
  • if you left before 01/04/1998 you must contact the local pension fund for an estimate due to the complexity of the calculation.

Transfer Timescales

The timescales below are based on the entire transfer process from the initial enquiry, through to advice, and eventual completion of the transfer, in months.

This information is based on our own scheme specific real-world data gathered over an 18 month period. To be clear and ensure there is no risk this information can be deemed misleading, it is our own data for the entire process, which includes our own very thorough and complex regulatory analysis and advice process, in addition to the gathering and provision of accurate information from the scheme administrators and their subsequent completion of any pension fund transfer requests. Future timescales could vary.

Fastest: 2.2

Slowest: 20.0

Average: 7.5

Local Government Pension Scheme (LGPS) Transfer Advice?

If you are a member of the Local Government Pension Scheme (LGPS) and would like to know if transferring or cashing in your pension at 55+ is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free consultation.

Grove Pension Solutions Ltd is regulated by the Financial Conduct Authority and specialise solely in defined benefit pension transfer.

Pension Transfer Consultation

Get Started Today

Free Pension Transfer Guide & Consultation
If you would like to find out if transferring your pension or taking a cash lump sum is suitable for you, we can provide a free initial Pension Transfer Consultation known as abridged advice.

Simply complete your details below, and we will send you our Pension Transfer Consultation Pack and Enquiry Form.

As part of the consultation we will look at:

  • What existing pension plans you have in place.
  • What your plans are for retirement.
  • Your needs for flexibility and control.
  • The likely cost of more in-depth advice.

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Defined Benefit Pension Transfer Warning

Transferring away from a defined benefit pension scheme means you will lose valuable guarantees.

Taking benefits early will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances. This should not be seen as an easy option for raising cash.

If you release all your money from your pension early you will not have anything left to provide you with income in retirement.

When releasing cash from your pension, usually up to 25% is tax free, the balance is taxed at your marginal rate at the time and could change in the future.

Watch the FCA video explaining the expectations of financial advisers when advising you on defined benefit pension transfers.

Grove Pension Solutions Ltd is authorised and regulated by the Financial Conduct Authority (Reference number 465051).

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