Local Government Pension Scheme

1
Local Government Pension Scheme
Pre Retirement Workshop
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How will my benefits be calculated?

• Membership to 31 March 2008
• Annual Pension 1/80 x service x final
  pay
• Automatic Tax Free Lump Sum 3/80 x
  service x final pay

• Membership from 01 April 2008
• Annual Pension 1/60 x service x final
  pay
• NO Automatic Tax Free Lump Sum

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Commutation ...more tax free cash?

4
Final Pay Membership

• Final Year of membership
• Best Year within the last 3 years of membership
• Average best 3 years pay in last 10 years of
  employment
• Benefits based on FTE pay
• Membership proportioned if part time

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How much will I get?

• termination date 31/03/2009
• final pay 20,000
• membership to 31/03/2008 30 years
• membership from 01/04/2008 1 year
• annual pension

1 80 x 30 x 20,000 7,500
1 60 x 1 x 20,000 333.33
7,833.33

• tax free lump sum calculation

3 80 x 30 x 20,000 22,500
BASE BENEFITS
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More tax free cash...?

• annual pension 7,833.33

• lump sum 22,500.00

• maximum conversion
  1,592.26

• 0.25 x (120 x 7,833.33 10 x 22,500) 7
  41,607.13

• revised annual pension 7,833.33 -
  1,592.26 6,241.07

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When can I retire?

• normal retirement age is 65
• voluntary retirement from 60
• early retirement from 50 / 55 with employer
  consent
• redundancy efficiency retirement
• ill health retirement

Tier 1 100 Tier 2 25 Tier 3
Accrued Benefits
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Early Retirement reduction

• Pre age 65 Retirements - unless protected
  under 85 year rule

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Early Retirement Reduction example
Female

• DOB 12/12/1946 (age 62)
• termination date 11/12/2008
• membership to 31/03/2008 11 years
• membership from 01/04/2008 255 days
• final pay 20,000
• annual pension

255 365 60 x 20,000 232.88
1 80 x 11 x 20,000 2,750
2,982.88

• tax free lump sum calculation

BASE BENEFITS
3 80 x 11 x 20,000 8,250
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Early Retirement Reduction example continued...
Female

• total annual pension 2,982.88

• LESS REDUCTION (15) 2,535.45

• tax free lump sum 8,250.00

• LESS REDUCTION (7) 7,672.50

Loss to benefits

• annual pension 447.43
• lump sum 577.50

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85 Year Rule

• Born on or before 31/03/1956
• - satisfy rule NO REDUCTION

• Born on or between 01/04/1956 and 31/03/1960
• - benefits to 31/03/2008 NO REDUCTION
• - benefits from 01/04/2008 TAPERED REDUCTION

• Born on or after 01/04/1960
• - benefits to 31/03/2008 NO REDUCTION
• - benefits from 01/04/008 FULL REDUCTION

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Tapered Reduction
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Topping up your benefits

• Additional Voluntary Contributions (AVC)
• Standard Life 0845 279 8831
• scheme reference no H93102

• Additional Regular Contributions (ARC)
• max 5k multiples of 250
• additional survivor pension?
• www.dyfedpensionfund.org.uk

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Post Retirement

• Annual Pension is TAXABLE

• Paid Calendar Monthly

• Index Linked

• Payment Advice Slips

• Change of Bank Details/Home Address

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Survivors Benefit

• Death Grant 10 Year Balance

• 1/160th Annual Pension

• Co-habiting Partners

• Paid Calendar Monthly

• Index Linked

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State Pension
Men age 65
State Pension Queries 0845 60 60 265 State
Pension Forecast 0845 30 00 168
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Thank you for listening
any questions?
Aled Williams [phone] Mathew James
[phone]
Pensions_at_carmarthenshire.gov.uk www.dyfedpensionf
und.org.uk