Annual Benefits Statements FAQs
Frequently Asked Questions to help you understand your Annual Benefits Statements
(i) I have previous membership with another Local Authority that is not showing on my ABS, I thought this was automatically transferred over?
LGPS membership is not always automatically transferred between Funds. You must notify us within one year of joining our Fund that you hold previous LGPS membership with another authority; even if you don’t wish to combine your membership it is still important that we are aware. We will then investigate the transfer and in all cases we will write to you with your options. If you have been a scheme member for over a year you may still have the opportunity to transfer with the consent of your employer.
(ii) I have left this job – why have I got this Illustration?
We depend on your employer telling us that you have left your job and because you have received this it is possible that they haven’t. If you have joined another pension scheme and are interested in transferring your pension benefits, please ask your new company or employer to write to us.
(iii) I am a casual worker, I do not work regular hours. Some of the information in this illustration seems to be missing?
If you started as a casual worker after 31st March 2014 you would not qualify for final salary benefits, unless you transferred in service so those fields would be blank.
(iv) If my pay is reduced due to sickness, what impact will this have on my pension?
If your pay is reduced or you receive no pay because you are off work due to sickness or injury, your pension builds up as though you are receiving the same pay you would have earned, had you not been off sick. You will continue to pay contributions on any pay you receive during your sick leave.
(v) How much will my pension be reduced if I choose to retire early?
If you choose to retire before your normal pension age (NPA), your benefits will be reduced to take into account that your pension will be paid for longer. How much your benefits are reduced by depends on how early you take them. The minimum age that you can take your pension is currently 55. The reduction for taking your pension early is based on the length of time (in years and days) that you retire early. The earlier you retire, the bigger the reduction.
The current percentage reductions for retirements up to 13 years early are shown in the table below. Where the number of years is not exact, we adjust the percentages. Benefits built up before 1st April 2014 have a different NPA, which for most people is age 65. You should always ask for a formal quotation of your benefits from the Pension’s Office before deciding to retire early.
| Number of years paid early | Pension reduction | Lump sum (for membership to 31 March 2014) |
|---|---|---|
| 1 | 4.9% | 1.7% |
| 2 | 9.3% | 3.3% |
| 3 | 13.5% | 4.9% |
| 4 | 17.40% | 6.5% |
| 5 | 20.9% | 8.1% |
| 6 | 24.3% | 9.6% |
| 7 | 27.4% | 11.1% |
| 8 | 30.3% | 12.6% |
| 9 | 33% | 14.1% |
| 10 | 35.6% | 15.5% |
| 11 | 39.5% | 15.5% |
| 12 | 41.8% | 15.5% |
| 13 | 43.9% | 15.5% |