Retirement Information

When can I retire?

The normal Scheme retirement age is linked to your State Pension Age, or age 65 if this is later.

How are my benefits calculated?

If you have scheme membership both before and after 1 April 2008 please follow the attached link to see how your benefits are calculated.

Members with Pre-2014 LGPS Membership.

Your retirement benefits are calculated as follows:

Annual Pension = Continue reading —–>

Pensionable Pay

This is your salary plus shift allowances, bonuses and any overtime worked. This also includes any assumed pensionable pay you have received while on leave due to sickness or injury, reduced pay or no pay, child-related leave or reserve forces leave.  Pensionable pay does not include travelling or subsistence allowances or any other expenses: pay instead of notice or holidays; the value of a car or pay received instead of a car.  Continue reading—–>

Can I give up some of my pension to increase my lump sum?

Yes, you will be able to exchange some of your pension for a bigger lump sum.  If you take this option, you will receive £12 extra lump sum for every £1 of your annual pension that you give up.  Certain tax limitations apply and you will be given further information on this prior to your retirement.

Ready Reckoner

The Modeller allows you to input pensionable pay details, assumed inflation and assumed pay increases to see how the value of an LGPS pension builds over the number of years you choose.  Continue reading—–>

Tax limits

There is a limit set by HM Revenues and Customs (HMRC) and this is known as the LIfetime Allowance (LTA).  Your benefits will be checked against this limit when you retire.  However, unless you have substantial pension benefits from your current or previous pensions it is unlikely you will exceed your LTA.  Excluded from the LTA are state benefits, pensions credit benefits, spouses, civil partners or any other dependants pension.

For more information about tax limits click here:

www.lv.com/lgps/education-centre/pension-basics/tax-pensions

Please Note: The Cheshire Pension Fund is not regulated to provide financial advice and cannot be held responsible for financial decisions taken by members. Any advice provided by Liverpool Victoria is made to you directly as a pension member and the Fund does not accept any responsibility for advice given to you by Liverpool Victoria or the consequences of any decisions you take in respect of such advice. Cheshire Pension Fund has agreed to host Liverpool Victoria on its website, following a satisfactory review of their services, in order to provide members with additional information to guide them in their decision regarding their pensions, but cannot accept any liability for the investment decisions taken between you and Liverpool Victoria.

Can I Retire Before the Normal Retirement Age?

Yes, if you have at least 2 years Scheme membership or have transferred previous membership into the Cheshire Pension Fund, you can leave employment voluntarily, between the ages of 55 and your State Pension Age and receive your pension benefits, but they will be reduced to take account of your early retirement.  Details of the reductions applicable can be found at the following link: Reductions

What if I leave on the grounds of Redundancy or Efficiency

If you are age 55 or over you have the right to draw your pension benefits immediately and unreduced if you are dismissed by your employer on the grounds of redundancy or efficiency.

Can I have a gradual move into retirement?

Yes, if you have at least 2 years total membership in the Scheme, or have transferred membership into the LGPS, you may wish to discuss the possibility of flexible retirement with your employer.  Continue reading—–>

What if I am retired on medical grounds?

There are three tiers of ill health retirement benefits in the LGPS. All ill health retirements must be certified by an Independent Registered Medical Practitioner (IRMP). Continue reading—–>

What if I carry on working after age State Pension Age?

If you carry on working after age State Pension Age you can continue to pay into the Scheme, accruing further benefits.  You can receive your pension when:

* You retire, or
* You reach the eve of your 75th birthday

Whichever occurs first.

If you draw your pension after age State Pension Age, the benefits accrued will be increased to reflect the fact that these are being paid later.

Your benefits must be paid by age 75.

How will my pension be paid?

Pensions are normally paid monthly direct into your bank or building society account.  Similar arrangements can also be made to pay your pension into your account should you move abroad.  Further information regarding the payment of pensions is provided on retirement.

Lump sums can only be paid direct to your bank or building society account.

When I retire will I receive an increase in my pension?

Your pensions will be revalued each year in line with cost of living, if you are:

If you do not fall into one of these groups, your pension will not increase until your 55th birthday.  Once you reach 55, we will write to tell you the new rate of pension payable.

Pension Sharing on Divorce

Pension Regulations have, since 1995, contained provisions whereby maintenance (known as earmarking) can be paid from a member’s pension to their ex-spouse under a Court direction.  Continue reading—–>

Where can I find some further Information?

Calculating your LGPS retirement benefits, as well as your Annual Allowance and Lifetime Allowance liabilities can be quite complex. The Cheshire Pension Fund has teamed up with Liverpool Victoria to provide members with support in their retirement planning. For more information click here

www.lv.com/lgps/home

Please Note: The Cheshire Pension Fund is not regulated to provide financial advice and cannot be held responsible for financial decisions taken by members. Any advice provided by Liverpool Victoria is made to you directly as a pension member and the Fund does not accept any responsibility for advice given to you by Liverpool Victoria or the consequences of any decisions you take in respect of such advice. Cheshire Pension Fund has agreed to host Liverpool Victoria on its website, following a satisfactory review of their services, in order to provide members with additional information to guide them in their decision regarding their pensions, but cannot accept any liability for the investment decisions taken between you and Liverpool Victoria.