Joining the Scheme?
If you are considering joining the LGPS please contact your employer's Payroll Section or Human Resource department to find out if you qualify to join.
The LGPS covers Local Government and other organisations that have chosen to participate in it. It is a national scheme whose rules apply throughout England and Wales, broken down into regional Funds so it is administered at a more local level. The administration of the LGPS in this area is carried out by South Tyneside Council and the Fund is called the Tyne and Wear Pension Fund.
The LGPS allows members to save while they are working in order to enjoy a pension once they retire. It is one of the best occupational pension schemes in the UK. What's more, the LGPS is provided by employers who meet a large part of the cost of providing the excellent range of secure benefits, so it's an extremely valuable and important part of a member's employment package.
The LGPS provides a guaranteed package of benefits which are backed by law including:
· a secure pension - payable for life that increases with the cost of living
· tax free cash - the option to exchange part of your pension for a tax-free lump sum at retirement
· voluntary early retirement - from age 55 (even though the scheme's normal pension age
is the same as your State pension age but with a minimum of age 65). Benefits drawn
before normal pension age may be reduced for early payment
· ill-health cover - if you have to retire due to illness you could receive immediate benefits which may be based on an enhanced period of scheme membership
· redundancy cover - with the early payment of pension benefits if you are made redundant or retired on business efficiency grounds at 55 or over
· life cover - with a lump sum of three times your final pay if you die in service
· cover for my family upon my death - including a survivor's pension for your husband, wife, civil partner or nominated cohabiting partner as well as children's pensions
The Government has introduced a new law designed to help people save more for their retirement. It requires all employers to enrol certain types of workers into a workplace pension scheme if they are not already in one. This is called 'auto-enrolment'.
Auto-enrolment will be gradually introduced from October 2012 over several years. The date when your employer has to enrol workers depends on the size of your organisation. Your employer will give you the exact date nearer the time. Some workers who will not be automatically enrolled may still be able to opt in to the LGPS. Please contact your employer if you want more information on how auto-enrolment will affect you.
If you join the LGPS and decide at a later date that it's not for you, you are free to opt out from your next available pay period. You might, however, want to take independent financial advice before making that decision.
