Planning Your Retirement - THE LOCAL GOVERNMENT PENSION ...

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Final PayThe other important elementused in working out yourbenefits is your final pay.This is usually the pay youpaid pension contributions onduring your final year of Schememembership, one of the previous2 years if higher or, if you suffera reduction or restriction in yourpay after 31 March 2008 andthis reduction/restriction occurswithin your last thirteen yearsof membership, you can electto have your benefits calculatedusing the average of the bestthree consecutive years in thelast ten years using your payas at 31 March of each year.Final pay includes:• normal pay• shift allowance bonus• contractual overtime• Maternity Pay, PaternityPay, Adoption Pay, and• any other taxable benefitspecified in your contractas being pensionableWe don’t include such thingsas car allowances, casualovertime, travelling or subsistenceallowances, pay in lieu of noticeor pay in lieu of loss of holidays.If you work part-time whenyou leave the LGPS, or haveworked part-time in your lastyear of membership, your finalpay is the whole-time paythat you would have received,if you had worked whole-time.If your pay was reduced inthis period because of sickness,your final pay will be the paythat you would have receivedhad you not been off sick.If you received a Certificate ofProtection (issued only up to31 March 2008) from youremployer within 10 years ofretirement because your paywas reduced or increases toyour pay were restricted throughcircumstances beyond your control,then we will work out your finalpay as the best year’s pay in thelast 5 years, or the best 3 yearaverage in the last 13 years.If your pension benefits arecalculated using a previous payperiod to your final year, yourbenefits would be increased byappropriate inflation increases.9
CalculatingRetirementBenefitsAnnual PensionYour annual pension is calculated intwo parts. Firstly your membershipup to 31 March 2008 is divided by80 and multiplied by your final pay.Then, any membership you haveafter 31 March 2008 is dividedby 60 and multiplied by yourfinal pay. When added together,the results of these calculationsgive your total pension.Retirement GrantYour automatic tax-free lump sumRetirement Grant is three times theannual pension you built up in theScheme up to 31 March 2008.Your benefits can be reduced orincreased, depending upon yourreason for retirement or whetheryou retire before or after age 65and you will be able to exchangesome of your pension for a biggertax-free lump sum. (See page 13).Examplesof how yourbenefits areworked out areshown overleaf10
Page 1: Planning Your RetirementThe Local G
Page 4 and 5: Introduction
Page 6 and 7: Planning YourRetirement
Page 8 and 9: LGPSRetirementBenefitsYour LGPS ret
Page 12 and 13: If you work Whole-Time: On retiring
Page 14 and 15: Options onRetirementTaking a bigger
Page 16 and 17: If you are buying extraLGPS pension
Page 18 and 19: Increasesto YourPensionYour LGPS pe
Page 20 and 21: Your StatePensionIn addition to you
Page 22 and 23: Can I retire early?If you have at l
Page 24: If you choose to retire before age6
Page 27 and 28: EarlyRetirementthroughRedundancyor
Page 29 and 30: Ill HealthRetirementWhat happens if
Page 31 and 32: Examples of calculating increased m
Page 33 and 34: TaxMatters
Page 35 and 36: information promptly it could delay
Page 37 and 38: Income Tax andyour PensionYour LGPS
Page 39 and 40: How yourRetirementBenefits willbe P
Page 41 and 42: Protectionfor yourFamilyWhat benefi
Page 43 and 44: Help withPensionProblemsIf you are
Page 45 and 46: GlossaryAdditional VoluntaryContrib
Page 47: Consumer Prices IndexThis shows the
Page 50: London Road be ready to turn righta

Planning Your Retirement - THE LOCAL GOVERNMENT PENSION ...

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