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  • Pensions increase

    The amount by which LGPS benefits are increased annually each April is based on inflation during the 12 months to September.

    The pension increase for 2018 will be 3%.

    The pension increase for 2017 was 1%.

    There was no increase to pensions in April 2016, as the Consumer Prices Index for the 12 months to September 2015 fell by 0.1%.

    LGPS pensions did not go down from April 2016 despite the fall in CPI.

    The April 2015 increase was 1.2%.

  • Pension sharing

    The splitting of a member's benefits upon divorce.
  • Policy statement

    Your employer must produce a policy statement. It sets out how they will treat discretionary items within the pension scheme.

    If any changes are made to the policy statement, you should be told within one month. You can ask your employer or us for the latest copies of their policy statements.

  • Protected members and the 85 year rule

    Do you want to check out your Rule of 85 position?

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    You need your employer's permission to retire before age 60 (55 if you were an active member after 31 May 2018).

    If you joined the LGPS after 30 November 2006 and decide to retire earlier than 65 years of age, your pension and lump sum will be reduced by a percentage relating to the number of years early you retire.

    If you were a member of the LGPS on or before 30 November 2006, and can satisfy the 85 year rule, you may have transitional protection which could entitle you to retire from 60 years of age and receive your pension and lump sum unreduced.

    You satisfy the 85 year rule if:

    • Your protected membership plus your age in whole years adds up to 85 or more.
    • If you joined the LGPS before 1 April 1998 and the date you would have achieved 25 years' membership is earlier than the date you satisfy the 85 year rule, the earlier date is used to assess the reduction for early retirement. This makes the reduction smaller.

    If you were a member of the LGPS on or before 30 November 2006, the following may apply:

    If you are 60 or over by 31 March 2020.......................................................

    And you satisfy the 85 year rule:

    • Any benefits accrued before 31 March 2020 will not be reduced.
    • Any benefits accrued after 31 March 2020 will be reduced by a percentage relating to the number of years early you retire.

    And you do not satisfy the 85 year rule, but would if you kept working to 65:

    • Any benefits accrued before 31 March 2020 will be reduced by a percentage relating to the number of years until you would have satisfied the 85 year rule.
    • Any benefits accrued after 31 March 2020 will be reduced by a percentage relating to the number of years early you retire.

    And you do not, and will not, satisfy the 85 year rule:

    • All benefits will be reduced by a percentage relating to the number of years early you retire.

    If you are under 60 on 31 March 2020.....................................................

    And you satisfy the 85 year rule:

    • Any benefits accrued before 31 March 2008 will not be reduced.
    • Any benefits accrued after 31 March 2008 will be reduced by a percentage relating to the number of years early you retire.

    And you do not satisfy the 85 year rule, but would if you kept working to 65:

    • Any benefits accrued before 31 March 2008 will be reduced by a percentage relating to the number of years until you would have satisfied the 85 year rule.
    • Any benefits accrued after 31 March 2008 will be reduced by a percentage relating to the number of years early you retire.

    And you do not, and will not, satisfy the 85 year rule:

    • All benefits will be reduced by a percentage relating to the number of years early you retire.

    The 85 year rule and protected membership can be quite complicated, so you're advised to contact us for more help.

  • Protecting your lifetime allowance

    When the lifetime allowance was introduced on 6 April 2006, it was decided that benefits accrued up to this point could be protected.

    Whenever a change has been made to the lifetime allowance further protections have been made available.

    You can lose protection in certain circumstances, and, if you don't inform HMRC, you could be fined.