I paid into the LGPS prior to 1 April 2014
Any pension you built up in the LGPS before 1 April 2014 is fully protected. This protection includes a Normal Pension Age of age 65 (except for a very small number of members with an earlier protected age of 60) for payment of those benefits.
You cannot take the benefits you built up prior to 1 April 2014 separately from the benefits you build up from 1 April 2014 onwards. All of your pension would have to be drawn at the same time if retiring voluntarily.
Also, Rule of 85 protections [1] which some members have, will continue to apply after 1 April 2014.
For Example:
A member retires at his Normal Pension Age in 2017 with a total of 16 years’ service.
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The first 7 years were in the 1997 Scheme,
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The second 6 years in the 2008 Scheme and
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The last 3 years in the 2014 Scheme.
His final pensionable pay figure is £15,320. His career average pension from April 2014 is £933.67.
Membership
|
Benefit Calculation
|
Amount
|
---|---|---|
Before 1 April 2008 = 7 years
|
Pension (7/80 x £15,320)
Automatic Lump Sum (3 x 7/80 x £15,320) |
£1,340.50
£4,021.50
|
Between 1 April 2008 and 31 March 2014 = 6 years
|
Pension (6/60 x £15,320)
|
£1,532.00
|
From 1 April 2014 = 3 years | CARE Pension | £933.67 |
The member's total LGPS pension benefits’ (adding together the three pension amounts) is £3,806.17 plus an automatic lump sum of £4,021.50.
He could increase the amount of benefit he will take as a tax free cash lump sum by exchanging pension to a maximum of £17,748.40 which would leave him with an annual pension of £2,662.26 (assuming he has no other pension savings).