About the Fund
The Tyne and Wear Pension Fund administers the Local Government Pension Scheme (LGPS) in the Tyne and Wear area. It:
- is one of the largest local government Funds in the country.
- has over 130 employers participating in the Fund. Click here to see the full employers list.
- has active, deferred and retired members which total over 107,000.
- has a fund value of over £3.11 billion (at 31st March 2009).
- pays pensions in excess of £166m per year.
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The LGPS:
- is a statutory scheme, the provisions of which are contained in regulations that are made by Communities and Local Government (CLG) 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 LGPS is one of the best ways to plan for retirement with an excellent range of benefits that both full-time and part-time employees can enjoy.
These include, after 3 months in the Scheme:
- A tiered ill-health retirement package if you have to leave work at any age due to permanent ill health. This could give you benefits, paid straight away, and which could be increased if you are unlikely to be capable of gainful employment within 3 years of leaving.
- Early payment of benefits if you are made redundant or retired on business efficiency grounds and you are aged *55 or over.
- The right to voluntarily retire from age 60, even though the Scheme’s normal pension age is 65. You can even retire from as early as age *55, provided your employer agrees.
- Flexible retirement from age *55 if you reduce your hours, or move to a less senior position. Provided your employer agrees, you can draw some or all of your benefits – helping you ease into your retirement.
- You can even stay in the LGPS if you carry on working beyond age 65, although you have to draw your benefits by 75. Benefits drawn after age 65 will be increased.
*If you are made redundant, retire on business efficiency grounds or retire through flexible retirement, the earliest age immediate benefits are
paid increased from age 50 to 55 with effect from 1 April 2008 for new members of the Scheme but won't
apply until 31 March 2010 if you were a member of the LGPS on 31 March 2008.
There is also:
- Life cover from the moment you join, with a lump sum of 3 years pay being paid if you die in service.
- Cover for your family, with a pension for your husband, wife, registered civil partner or nominated co-habiting partner and for eligible children if you die in service or die after leaving with a pension entitlement.
When you retire you can look forward to a pension for life that increases with the cost of living in most cases, and you can exchange part of your annual pension for a one off tax-free cash payment. The LGPS is a final salary scheme, which means your benefits are normally based on your final year’s pensionable pay and the number of years you have been a member of the Scheme.