Deferred Members
Combining LGPS Membership - Final Pay Calculator
If you have deferred benefits in the Local Government Pension Scheme (LGPS) and you rejoin, you can normally either leave your deferred benefits separate, or transfer/combine your benefits. If you want to transfer/combine you must elect to do so while you are a contributing member of the LGPS in your new job and, normally, within twelve months of the day you rejoined or by 31 March 2005, if later. The Final Pay calculator will allow you to compare your current pensionable earnings with the pensionable earnings from your previous post, taking into account rises in the cost of living.
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Moving house?
It is essential that you keep the Tyne and Wear Pension Fund informed of your current address so we can inform you of any changes or articles concerning the scheme that may be of interest and to ensure that your retirement benefits can be processed at the appropriate time. If you have moved recently and have not informed us or you are planning to move please contact us.
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What happens to my deferred benefits?
Your benefits will remain deferred within the Tyne and Wear Pension Fund until they become payable or until you decide to transfer them. deferred benefits are fully inflation proofed. Each April the value of your benefits will increase in line with inflation. In this way, your pension always maintains its purchasing power.
Unlike Personal Pensions your benefits are guaranteed by law and can't be affected by stock-market fluctuations.
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When will my deferred benefits be paid?
Your deferred pension is payable from your 65th birthday. However, the Scheme Regulations allow the Fund to pay you a pension from your 60th birthday, although this may be reduced. Further details will be provided nearer the time.
If you wish, you can choose to "put off" receiving payment of your benefits until after your 65th birthday. You can take your benefits anytime between your 65th birthday and the eve of your 75th birthday. Your benefits must be paid to you no later than the day before your 75th birthday.
Your deferred benefits are fully protected against inflation. Each April, your pension and any lump sum will increase in line with the rise in the Retail Price Index (RPI), which measures the increase in the cost of living. We will send you a deferred Annual Benefit Statement every year between now and the date the benefits are due for payment confirming this increase.
In certain circumstances you may be able to access your deferred benefits before the normal payment date.
You may elect to receive payment of your benefits early, at or between the ages of 55 and 59 (50 if you were in the scheme on 31 March 2008 and make your application to receive your benefits before 1 April 2010) with your former employer's consent. If your former employer agrees, the benefits that can be drawn may be subject to an actuarial reduction.
Your benefits can be brought into payment earlier on the grounds of ill health if an independent suitably qualified medical officer certifies that you are permanently incapable of carrying out the duties of your scheme employment because of ill health or infirmity of mind or body. If you feel that this may apply to you at any time in the future, please contact your former employer who will arrange for the medical examination to take place. If the medical officer certifies that you satisfy the medical requirements your deferred benefits will become payable.
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Transferring your benefits to another Scheme
Your benefits can be transferred to another employer's scheme provided that the scheme is fully approved by the Inland Revenue for this purpose. You could also transfer to a Personal Pension Plan, Section 32 Buy Out Bond or to a New Style Self Employed Pension Arrangement.
However you should think very carefully before you make a decision. Deferred benefits provide a wide range of benefits for you and your family, which are fully inflation proofed.
We strongly recommend that you seek independent financial advice before going ahead with the transfer of your benefits.
Warning - Beware of Pension Liberation Schemes
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Should you die before your benefits are paid
If you leave with deferred benefits after 31 March 2008 and die before receiving them, the following benefits are payable:
- A lump sum death grant of 5 times your deferred annual pension
- A survivor's pension. A pension will be paid to your husband, wife, registered civil partner or, subject to
certain qualifying conditions, your nominated co-habiting partner. This pension is payable immediately
after your death for the rest of their life and will increase every year in line with the cost of living (RPI). - Children's pensions - these are payable to eligible children and increase every year in line with the cost of living (RPI).
If you left employment before 1 April 2008 with deferred benefits and die before your deferred benefits come into payment, the following benefits are payable:
- A lump sum equal to your deferred lump sum (including pensions increase up to the date of your death) would be paid to your nominated beneficiary or beneficiaries.
- In most cases, your husband or wife will receive a long-term pension of half of your deferred pension for the rest of their life. If you marry after you left local government employment your spouse’s pension may be calculated differently. If you have a civil partner, a long-term pension will be payable (providing you left the LGPS on or after 1 April 1998). This will be calculated using your membership from 6 April 1988 only.
- Any eligible dependant children would also qualify for a pension.
If you have not completed a death grant nomination form and you would like to do so or if you wish to revise your nomination please contact us.
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Pensions and Divorce
If you divorce and your pension is taken into account within the divorce settlement, the Pension Fund may charge you for dealing with your case.
Please click below to see a list of our changes.
Charges - Pensions and Divorce
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Data Protection Statement
To view our Data Protection Statement, please click below:
Data Protection Statement (10.68KB)