Paying your LGPS benefits

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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 your 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, interest will be calculated as compensation.
 

Payment of Pension

Future payments will be made into your account on the last working day prior to the 11th of each month:
 
  • directly into a bank
  • directly into a building society
 

Trivial Pensions

At State Pension Age or later, should the value of your annual pension plus any other pensions be no more than 1% of the 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.
 

Payslips

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
  • In May including your P60 certificate
  • In any month when your net pay varies by more than £1.00 from the previous month.
 

'MyPension' online service

'MyPension' allows registered users in receipt of a pension, to see details of how much they are paid each month.
 

Payment Overseas

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

Any queries you have regarding payments should be directed to the Payroll Section at the Fund on 0151 242 1399.