Planning Your Retirement - THE LOCAL GOVERNMENT PENSION ...

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If you work Whole-Time: On retiring at age 65 with 20 years wholetimemembership (18 years up to 31.3.2008, two years from 1.4.2008)in the Scheme and a final years pay of £12,000. The annual pension is:18 years x 1/80 x £12,000 = £2,700 (old Scheme pension’)+ 2 years x 1/60 x £12,000 = £ 400 ( new Scheme pension’)£3,100The automatic tax-free lump sum is three times the old Scheme’ annual pension:£2,700 x 3 = £8,100If you work Part-Time: The same calculation is used, but yourmembership is scaled down to the part-time equivalent length based onyour contractual hours and your final pay is scaled up to the whole-timeequivalent rate. On retiring on 31 March 2010 at age 65 after 20 years(18 years up to 31.3.2008, two years from 1.4.2008) working half time -18½ hours a week in a 37 hour job with a part-time final pay of £6,000.Membership to be used in calculating benefits is reduced like this:20 years x 18½ ÷ 37 = 10 yearsAnd we would use a whole-time equivalent pay, so: The annual pension is:9 years x 1/80 x £12,000 = £1,350 (old Scheme pension’)+ 1 years x 1/60 x £12,000 = £ 200 ( new Scheme pension’)£1,550The automatic tax-free lump sum is three times the old Scheme’ annual pension:£1,350 x 3 = £4,050This member will have paid half the contributions and receive half thebenefits of an equivalent whole-time person.If your hours have changed during your membership of the Scheme,your benefits will be calculated to reflect the changes. If you do not haveany contractual hours, your membership for each year in the LGPS willbe calculated on average weekly hours worked during each year.11
Default<strong>Retirement</strong>AgeBetween April 2011 and October2011, the Government phasedout the default retirement ageso that people now have morechoice when to stop working.Previously, the default retirementage enabled employers to makestaff retire at 65 regardless oftheir ability or desire to continueworking, but now, employees havemore choice on whether toretire on reaching pensionableage, or to continue working.The Local Government PensionScheme (LGPS) already allowseligible employees to remain in theScheme up to age 75. If you carryon working after age 65 you maycontinue to pay into the Scheme,building up further benefits. If youdraw your pension after age 65,it will be paid at an increased rateto reflect the fact that it will be paidfor a shorter time. <strong>Your</strong> pension hasto be paid by your 75th birthday.12
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 10 and 11: Final PayThe other important elemen
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

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