About the Fund
The Tyne and Wear Pension Fund administers the Local Government Pension Scheme in the Tyne and Wear area. It:
- is one of the largest local government Funds in the country.
- has over 120 employers participating in the Fund. Click here to see the full employers list.
- has active, deferred and retired members which total over 101,000.
- has a fund value of over £3.726 billion (at 31st March 2007).
- pays pensions in excess of £125m per year.
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The Local Government Pension Scheme :
- is a statutory scheme, the provisions of which are contained in regulations that are made by the Department for Communities and Local Government (DCLG) and are ultimately approved by Parliament.
- meets the requirements of both the Department for Work and Pensions (which is part of the former Department of Social Security) and the HM Revenue and Customs, because it provides benefits of at least the value of the state scheme, and within limits set by Parliament.
- is contracted out of the state pension scheme.
- is a Final Salary pension scheme which provides benefits which are guaranteed, based on your pay and length of scheme membership. Benefits are not dependent on investment performance.
- members who are liable for tax and insurance benefit by paying lower national insurance contributions and receive tax relief on pension contributions.
- is funded by employees and employers contributions.
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The Scheme provides its members with an extensive range of guaranteed benefits including:
- tax free lump sum - payable on retirement.
- retirement pension – payable monthly, for the rest of your life.
- spouses pension – payable after your death, for the rest of your spouse's life.
- childrens' pensions – payable after your death, to any dependant children.
- life assurance – a lump sum death grant if you die in service or within 5 years of retirement.
- ill-health retirement – benefits can be paid early, if you are forced to retire because of ill health.
- early retirement options – benefits can be paid from age 50, at the discretion of your employer.
- guaranteed pension increases – the value of your pension increases each year in line with inflation.
- transferable pensions – you can transfer pension rights into or out of the LGPS.
- facilities to pay extra contributions (PDF Doc - 212KB) – you can pay more to increase your pension benefits.
With these benefits can you afford not to join the LGPS?