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Life events

Thinking of returning to work

Taking up new employment will not usually affect your local government pension.

If you start a new job after retiring we will not issue you with a P45.  Your tax free allowances will be offset against your pension.

 

You will need to complete a Starter Checklist from www.hmrc.gov.uk and provide it to your new employer.  Your new employer will then give this information to HMRC and it will help them to use the correct tax code.

  • If you leave the scheme and have been a member for less than the 2 year vesting period, you can choose to receive a refund of the contributions you have paid (net of the statutory deductions) provided that:

    • You do not start working for another Local Government employer within 1 month and 1 day of your leaving date.
       

    Please note the Cheshire Pension Fund will have to deduct tax and an amount equivalent to the National Insurance you would have paid (to repay on your behalf) if you had not been a member of the scheme.

    If you joined the scheme before 1 April 2014, left with less than the 2 years vesting period but have more than 3 months membership you can:

    • Take a refund of your pension contributions; as long as you meet the criteria above and have elected to receive the refund within 6 months of leaving

    • Have a deferred pension which increases in line with inflation until payment; or

    • Transfer your pension benefits to another scheme.
       

    The vesting period
     
    The vesting period refers to the period of time that you must be an active member of the LGPS before becoming entitled to benefits under the scheme.  The vesting period in the LGPS is 2 years, however, it can be met before 2 years in certain circumstances.  You will meet the 2 year vesting period if any of the following conditions apply:
     

    • You have been a member of the LGPS in England and Wales for 2 years

    • You transferred a pension into the LGPS from a different occupational pension scheme or from a European pensions institution and, the length of service you had in that scheme or institution was 2 or more years or, when added to the period of time you have been a member of the LGPS the period is in total more than 2 years

    • You have brought a transfer of pension rights into the LGPS in England or Wales from a pension scheme or arrangement where you were not allowed to receive a refund of contributions

    • You have previously transferred pension rights out of the LGPS in England or Wales to a pension scheme abroad i.e. to a qualifying recognised overseas pension scheme

    • You already hold a deferred benefit or are receiving a pension from the LGPS in England or Wales (other than a survivor’s pension or pension credit member’s pension)

    • You have paid National Insurance contributions whilst a member of the LGPS and you stop paying into the LGPS in the tax year of attaining pension age

    • You cease to contribute to the LGPS at age 75

    • You die in service

  • If you have been a member for more than 3 months your benefits can be transferred out of the Cheshire Pension Fund at any time after you leave providing that your new employer or pension provider is willing to accept the transfer value.

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    You should check that your new pension provider will accept transfers and that you are within any time limits they may apply before you request a transfer out of the Cheshire Pension Fund.

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    If you have less than two years membership at the date you leave and after one year you decide not to transfer your benefits, you will receive a refund of your contributions (plus interest).

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    The Government announced in the 2014 Budget that reforms to workplace pensions would be made to offer greater flexibility in the way individuals aged 55 and over can access any Defined Contribution (DC) pension savings they may have.  These changes became effective on 6 April 2015.

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    It’s important that as a member of the Local Government Pension Scheme (LGPS) you understand that you are a member of a public sector Defined Benefit (DB) scheme and therefore the flexibilities introduced under ‘Freedom and Choice’ do not impact on how you can take your Defined Benefits from the LGPS.

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    There are however, some indirect changes which that will impact members of the LGPS who are considering transferring the value of their accrued LGPS Defined Benefit pension rights from the LGPS to a DC arrangement offering flexible benefits.

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    The LGPS have produced Freedom and Choice questions and answers to help you understand the changes. 

  • Once you have 2 years of membership in the Scheme (or less if you have transferred previous pension rights in), your benefits will be deferred in the Cheshire Pension Fund until you reach your normal retirement age.  During the time your benefits are deferred in the Fund, they will be revalued in line with the Consumer Price Index (CPI) each year from the date you leave.

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    If you joined the scheme before 1 April 2014 you may also choose to take a refund or transfer

    your benefits.  You can only take these additional options if:

     

    • You left the scheme after 1 April 2014

    • You have more than 3 months membership, but less than 2 years membership

  • For more information on opting out of the LGPS click here

Moving overseas

Is it possible to have my pension paid in to my overseas bank account?

For those pensioners living abroad or who are planning to move abroad you will still receive your pension.

 

Payments can be made direct to your overseas bank account using the Citibank facility for overseas payments.  Your pension will be paid to your overseas account already converted into the currency of that country.

Death in retirement

If you die while in receipt of a pension, any benefits payable will depend on when you retired and if you have any dependants when you die.

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Depending on your circumstances the Scheme can provide:

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  • A lump sum death payment

  • Survivor’s pensions

  • Children’s pensions

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Have you completed a Death grant expression of wish form Nominate who receives your death grant

  • You left before 1 April 2008

    If you die within 5 years of retiring and are under 75 at the time of death, your beneficiary/beneficiaries will receive a lump sum payment equal to 5 times your annual pension

    less any pension already paid.

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    You left on or after 1 April 2008 but before 31 March 2014

    If you die within 10 years of retiring and are under 75 at the time of death, your beneficiary/beneficiaries will receive a lump sum payment equal to 10 times your annual pension less any pension already paid.
     

    You left on or after 1 April 2014

    If you die within 10 years of retiring and are under 75 at the time of death, your beneficiary/beneficiaries will receive a lump sum payment equal to 10 times your annual pension less any pension already paid. If you elected to convert some of your pension to lump sum at retirement. An adjustment is made to the death grant to take this into account.

    If you are still paying into your pension when you die and also have separate benefits on hold or in payment (either with The Cheshire Pension Fund or in another local government pension fund) then the death grant will be the greater of:

    • The total of any death grants payable from the benefits on hold and/or pensions in payment; or

    • Three times your annual pay at your date of death. 

  • When you die, we may be able to pay a pension to your husband/ wife, your civil partner or your cohabiting partner. It is important that whoever is looking after your affairs lets us know as soon as possible. We can then stop your pension and put in place any new pensions which are due. This will help us make sure we don’t make any overpayments and have to claim back money.

     

    We can be notified online: Notify us of a member’s death. We will then write to the relevant person.
     

    The amount of pension is based on how long you were in the Scheme, your pay when you retired, and any dependants you leave.  The pension will be payable for life to your husband/ wife or your civil partner or your cohabiting partner even if they remarry.  For full details of how your Survivor’s Pension will be worked out visit : www.lgpsmember.org
     

    If you got married after you retired, not all your membership may count towards a pension for your husband or wife, civil partner or cohabiting partner.

     

    Cohabiting Partners – the scheme includes a cohabiting partner’s pension for dependant partners in both opposite and same sex relationships. The definition of a qualifying partner is:

     

    • You must have lived with your partner in a permanent exclusive relationship for a minimum of two years.

    • You must be legally free to marry or to enter into a civil partnership.

    • You and your partner are living together as if you were husband and wife or as if you were civil partners.

    • You and your partner must be financially interdependent.
       

    Some examples of financial interdependency accepted by HMRC (these are not exhaustive and not all need to be met) are:
     

    • You share a household and its related costs.

    • You have a joint bank account or mortgage.

    • You have named each other as beneficiaries in your wills.

     

    Cohabiting partner’s pensions are only based on your Scheme membership from 6 April 1988. You have to have paid into the LGPS on or after 1 April 2008 for a pension to be payable to your eligible cohabiting partner.
     

    There is no requirement to a nominate your cohabiting partner, however, by doing so it may avoid delays in making payment in the event of your death. You can complete the following form nominating your cohabiting partner.

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    Any application for a co-habiting partner’s pension will be void if the conditions above have not been continuously met for at least two years at the date of death. In the event of your death, we will request evidence that you meet the criteria for a Cohabiting Partner pension to be paid; examples of evidence could be: a joint mortgage statement/joint bank statement/joint utility bill/registration on the Electoral Register.

  • To be eligible, your children must at the date of your death:

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    • be under 18 and be wholly or mainly dependant on you, or

    • be aged 18 or over and under 23, be dependent on you, and be in full time education or undertaking vocational training (although a dependant child who commences full-time education or vocational training after the date of your death may be treated as an eligible child up to age 23), or

    • be unable to engage in gainful employment because of physical or mental impairment and either:

      • has not reached the age of 23, or

      • the impairment is, in the opinion of an independent registered medical practitioner, likely to be permanent and the child was dependent on you at the date of your death because of that mental or physical impairment. (In this context gainful employment means paid employment for not less than 30 hours in each week for a period of not less than 12 months).

    • in all cases, the children must have been born before or within a year of your death.

     

    The amount of pension depends on the number of children you have:

    If a survivor’s pension is being paid to your husband, wife, civil partner or nominated co-habiting partner, one child would receive 1/320th of your final pay times the total membership your deferred pension is based on, while two or more children would receive 1/160th shared equally between them.

     

    If there is no husband, wife, civil partner or nominated co-habiting partner’s pension being paid, one child would receive 1/240th of your final pay times the total membership your deferred pension is based on, while two or more children would receive 1/120th shared equally between them.

     

    Please note the pension may be reduced if your child is receiving pay while in full-time training for a trade, profession or vocation.

    All Children’s Pensions must be paid into a bank account which they are a named account holder.

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