Frequently Asked Questions about LGPS pensions

An option to take a lump sum has to be made in writing before your benefits are paid. So that you have plenty of time to make up your mind and seek financial advice if you wish, it is important you contact us well in advance of your intended retirement date so we can provide you with more details.

Your pension will be reduced in accordance with any election you make to receive a lump sum. Any subsequent pension for your spouse, civil partner, eligible cohabiting partner or eligible children will not be affected if you decide to exchange part of your pension for a lump sum.

If you have a GMP, you may not reduce your pension to below the level of your GMP.

The Fund may be able to pay a small pension as a one off lump sum less a tax charge. Please contact our Benefits section on 0151 242 1391 for more information.

• I am buying extra pension by paying Additional Pension Contributions (APCs) or Shared Cost Additional Pension Contributions (SCAPCs)

• I am buying extra pension by paying Additional Regular Contributions (ARCs)

• I am buying extra years in the LGPS (Added Years)

• I am paying Additional Voluntary Contributions (AVCs) arranged through the LGPS (in-house AVCs)

There are HM Revenue and Customs controls on the pension savings you can have before you become subject to a tax charge when you draw them (over and above any tax due under the PAYE system on a pension in payment).

You can find out about HM Revenue and Customs controls on your pension savings in the section Tax controls and your LGPS benefits.

Also, under HM Revenue and Custom rules, if the LGPS makes an unauthorised payment there will be a tax charge or if you pay some or all of your LGPS lump sum back into a pension arrangement, there may be a tax charge.

On retiring on or after age 55, your LGPS pension increases in line with the cost of living every year throughout your retirement.

As the cost of living increases, so will your pension. If you are retired on ill health grounds, your pension is increased each year regardless of your age.

In addition to your LGPS benefits, you may also qualify for a state retirement pension paid by the government from State Pension Age.

For more information, please click here.