Planning Your Retirement - THE LOCAL GOVERNMENT PENSION ...

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If you are buying extraLGPS pension by payingAdditional RegularContributions (ARCs)Your contributions will cease onretirement and you will be creditedwith the extra pension that youhave paid for. This will increase thevalue of your retirement benefits.But if you are paying ARCs whenyou retire and qualify for the typeof ill health pension where yourbenefits are based on enhancedmembership, you will be creditedwith all the extra pension that youset out to buy, even if you have notcompleted full payment for it.If you choose to retire early anddraw your benefits before age 65,or you are retired on redundancyor business efficiency grounds,the extra pension you have boughtwill be reduced for early payment.If you draw your benefits on flexibleretirement, you will be able todraw the extra pension you havepaid for, although it will be reducedfor early payment.You can choose to exchange someof the extra pension you have boughtfor a cash lump sum in the same wayas your main LGPS pension.If you are paying in-houseAVCs through the LGPSYour contributions will cease onretirement and you have a choiceof how you use your AVC fund:Buy an AnnuityThis is where an insurancecompany, bank or building societyof your choice converts the valueof your AVC Fund and pays youan annuity (pension) in return.You can do this at the sametime as you draw your LGPSbenefits or you can choose todelay payment until any time upto the eve of your 75 th birthday.An annuity is paid completelyseparately to your LGPS benefits.The amount of annuity dependson several factors, such as interestrates and your age. You also havesome choice over the type ofannuity, for example whether youwant annual increases and whetheryou want dependants’ benefits.Buy a Top-up LGPS PensionIf you retire with immediatepayment of your benefits you maybe able to use your AVC fund tobuy a top-up pension from theLGPS. This automatically providesinflation proofed pension anddependants’ benefits in the sameway as your main Scheme benefits.15
Buy extra membershipin the LGPSIf you started paying AVCs before13 November 2001 and you areaged 50 or more and ceasedpayment of your AVCs beforeyou retire, or at any age if you areretiring on ill health grounds, youhave the choice to convert your AVCfund into extra LGPS membership.This will provide extra pensionfor you and your dependants,paid and increased in the sameway as your LGPS pension.Take your AVCs as cashIf you draw your AVC at the sametime as your LGPS pension, youmay be able to take some or all ofyour AVC as tax-free lump sum.Working out how much scope youhave is fairly complex especially ifyou also wish to convert some ofyour ordinary LGPS pension intolump sum. We will explain yourown position close to the time youretire. If you decide to draw yourAVC later, you can have up to 25%of your AVC fund as a lump sum.Any extra life cover paid for throughAVCs will cease, as you can nolonger pay AVCs after leaving.AVC benefits can be drawn early onflexible retirement (See page 25).If you are buying extrayears in the LGPSIf you are paying additionalcontributions to buy extra yearsin the LGPS, your contributionswill cease when you retire.You will be credited with theextra period of membership thatyou have paid for at the time ofleaving. This will increase thevalue of your retirement benefits.If you retire early because ofredundancy or efficiency, wewill give you the opportunity topay the remaining contributionsdue in a lump sum in orderto complete your contract.If you retire on ill health grounds,you will be credited with the wholeextra period of membership thatyou set out to buy, even if you havenot completed full payment for it.If you draw benefits on flexibleretirement you can continue topay for any extra years you arebuying. The benefits from theextra membership will not bepaid until you finally retire.For further information relatingto Increasing Your PensionBenefits please call the Fundon 0151 242 1396.16
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 12 and 13: If you work Whole-Time: On retiring
Page 14 and 15: Options onRetirementTaking a bigger
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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