PAYING YOUR PENSION
First Payment of Pension
Your first payment of pension is paid directly into your chosen bank or building society account at the same time as your lump sum. This special first payment covers the period from the date of your retirement to the end of the month and usually all of the following month.
Payment of Lump Sum
Your lump sum is paid directly in to your chosen bank or building society account. You can choose to have your lump sum and pension paid into different accounts if you wish. You are strongly advised to seek some independent financial advice on how best to use or invest your lump sum.
Interest on Late Payment of Lump Sum
If payment of a lump sum is delayed for any reason for more than 1 month from the date of retirement, the current bank rate of interest plus 1% is paid for every day of delay as compensation.
Payment of Pension
All pensions are paid monthly no later than the 10th of each month for the whole of that month. You can choose to have your pension paid either:
- directly into a bank
- directly into a building society
It is very important that both the Sort Code and Account Number details are accurately completed on form LGP1b.
At State Retirement Age or later, should the value of your annual pension plus any other pensions be no more than 1% of Lifetime Allowance, it may be possible to convert your LGPS pension to a one-off payment. The conversion rate depends on your age, sex and marital status at state retirement age. Under no circumstances can pensions in excess of this amount be commuted. Any decision to commute is final and means that there is no further liability on the Fund to pay any dependants’ benefits in the event of your death.
The Fund does not normally send a payslip to you every month as, for the majority of pensioners, the amount paid each month does not alter significantly. You will receive a pay advice when you first retire, thereafter you will receive one in April giving details of any pension increase and in May including form P60. You will also receive a pay advice in any month when your net pay varies by more than £1.00 from the previous month.
My Pension Online
My Pension Online allows registered users to view details of any relevant membership(s) of the Local Government Pension Scheme (LGPS) administered by Merseyside Pension Fund and calculate your own pension estimates.
If you decide to emigrate, your pension can still be paid monthly into a bank account anywhere in the world. All overseas transactions are dealt with by Citibank who make a small charge for currency conversion and transmission of the payment.
Any queries you have regarding payments should be directed to the Payroll Section at the Fund on 0151 242 1391.