Planning Your Retirement - THE LOCAL GOVERNMENT PENSION ...

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Can I retire early?If you have at least three monthstotal membership or havebrought a transfer value into theLGPS you can elect, in writingto your employer, to retire andreceive your LGPS benefits atany time from age 60 onwards.Between and including the agesof 55 and 59 you may also electto retire and receive your LGPSbenefits, but only if your employergives their consent. This is anemployer discretion and under theLGPS your employer’s policy withregard to this must be includedon their Policy Statement.Will my pension andlump sum be reducedif I retire early?If you choose to retire before age65 your benefits may be reducedto take account of being paid forlonger. Your pension and lumpsum are initially calculated asdetailed in the section on LGPSRetirement Benefits (see pages7 - 9) and are then reduced toreflect that they are being paidfor longer (see table page 24).Your employer can agree towaive these reductions oncompassionate grounds.How muchyour benefits arereduced depends onhow early you drawyour benefits, how muchmembership you haveand when you joinedthe Scheme.21
If you joined the LGPS after30 September 2006Your benefits will be reduced ifpaid before age 65. The reductionis based on the length of time(in years and days) that you retireearly - from the date your benefitsare paid to age 65. The earlier youretire, the greater the reduction.ExampleA man who joined the LGPSin October 2006 asks toretire at 60. He is choosingto receive his benefits fiveyears before 65, so hispension and lump sumwill be reduced as follows:Pension reduction: 24%Lump sum reduction: 12%If you were alreadyPaying into the LGPSon 30 September 2006Some or all of your benefitspaid early could be protectedfrom reduction.All members who joined theScheme before 1 October 2006retain the 85 year rulein respect of membership upto 31 March 2008.The 85 year rule is satisfied ifyour age at the date you drawyour benefits and your Schememembership add up to 85 ormore (each in whole years).If you are part-time, yourmembership counts towards the85 year rule at its full calendarlength. Working out how youare affected by the 85 year rulecan be quite complex, but thefollowing examples should helpyou work out your position.If you choose to retire beforeage 65 and do not satisfythe 85 year rule when youdraw your benefits, yourbenefits are reducedThe reduction is determined bythe date you reach age 60 and isbased on either; how far short youare of satisfying the 85 year rule,the years remaining to age 65,or a combination of both.ExampleA woman retires at 60on 31 March 2007 with12 years LGPS membership.As she does not satisfy the85 year rule on retirement(60 + 12 = 72) her benefitsare reduced. As she wouldnot have satisfied the 85 yearrule by age 65, the reductionis based on her receivingher benefits 5 years early,so her pension and lump sumwill be reduced as follows:Pension reduction: 23%Lump sum reduction: 12%22
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 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 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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