News and Newsletters

This section provides specific news for active members in the scheme. For more information on the new LGPS 2014 please click the 'LGPS 2014' tab

If you are looking for other publications from LPP, such as our Annual Reports and Public Policy Statements, you might like to visit our Corporate Site www.lpfa.org.uk

 

Pension case verdict in the news!

Denise Brewster, who was refused payments from her former partner's pension, has won her battle to extend benefits automatically to those who are unmarried, in a case which could benefit large numbers of public sector workers. Her victory at the Supreme Court marks a significant extension of the rights of unmarried cohabitees after five justices ruled the refusal to pay her the pension was unlawful. Her partner had worked for 15 years at Translink, which runs Northern Ireland's public transport services, and had paid into Northern Ireland's local government pension scheme. Shlomit Glaser, a solicitor specialising in family law at the London firm Glaser Jones said: It has wide implications for public sector schemes. The Supreme Court emphasised that no convincing economic or social reasons had been put forward for the policy of excluding a cohabitee, solely because a form had not been filled in.

This case highlights the importance of having an up-to-date nomination form. You can find these forms here: Nomination Forms



Working past 65

As you may already be aware by working past age 65 your pension benefits receive an actuarial increase applied to the pension benefits you have built up when you belatedly take your benefits to recompense you for the pension being paid for a shorter period.

The Government Actuary Department have now issued revised factors for those who delay their retirement beyond age. These changes come into effect from 4 January 2017 and are significantly reduced from those in place previously.

The factor for actuarial increase has been reduced from 0.014% to 0.01% for annual pension (for each day worked past SPA) and from 0.007% to 0.001% in respect of lump sums. Actuarial increases for late retirement are calculated based on the factors in force at the ultimate date of retirement, therefore after 4th January this change will apply to all days worked past age 65. This will result in a reduction in the additional pension earned prior to 4th January if a member retires after this date.

Below is an example comparison of the actuarial increases earned by a member whose pension was due into payment on 31/12/2015 but who had delayed their retirement by 1 year, and by 1 year and 1 month in example B (notional values used for example). This illustrates the overall reduction in actuarial increases as a result of the new factors being used in the calculation for a member retiring after 4th January 2017.

 

Example A

 

Basic Value

Calculation under existing Factors

Increase for Late Retirement

Annual Pension

£11,000

365 days x 0.014% x £11,000

£562.10

Lump Sum

£25,000

365 days x 0.007% x £25,000

£638.75


Example B

 

Basic Value

Calculation under post 4th January 2017 Factors

Increase for Late Retirement

Annual Pension

£11,000

395 days x 0.01% x £11,000

£434.50

Lump Sum

£25,000

395 days x 0.001% x £25,000

£98.75

Please note that these new factors will come into effect from 4th January and will apply to all the benefits that have been delayed beyond age 65, for some members this could be a significant reduction. 

If you wish to discuss the impact this will have on our own pension benefits please contact: Enquiries@localpensionspartnership.org.uk.

 



End of Contracting out National Insurance

Public sector letter

Public sector factsheet

FAQs - Members

FAQs -  Employers

 



Fund Member Forum 2017

Fund Member Forum 2017

Our annual Fund Member Forum will be held on Thursday, 21st  September 2017 at Imperial College, London.

Doors will open at approximately 10am, with the event running until 2pm.

Last years event was a huge success, we look forward to welcoming you again.

 



Year in Review (Summary Annual Report) 2015-16

Year in Review (Summary Annual Report) 2015-16



Contribution Bands from 1 April 2017

The following table displays the 2017/18 bands

If your pay is:

Main section

50/50 section

Up to £13,700.99

5.50%

2.75%

£13,701 to £21,400.99

5.80%

2.90%

£21,401 to £34,700.99

6.50%

3.25%

£34,701 to £43,900.99

6.80%

3.40%

£43,901 to £61,300.99

8.50%

4.25%

£61,301 to £86,800.99

9.90%

4.95%

£86,801 to £102,200.99

10.50%

5.25%

£102,201 to £153,300.99

11.40%

5.70%

£153,301 or more

12.50%

6.25%

 



Pension Liberation Fraud

Pension Liberation Fraud

Recent news reports have highlighted an increasing number of fraudulent pension liberation schemes. Companies are singling out savers like you and claiming that they can help you cash in your pension early. If you agree to this you could face a tax bill of more than half your pension savings.

‘Pension loans’ or cash incentives are being used alongside misleading information to entice savers as the number of pension scams increases. This activity is known as ‘pension liberation fraud’ and it’s on the increase in the UK. In most cases, promises of early cash before age 55 from your  current scheme will be bogus and are likely to result in serious tax consequences. Tax charges of over half the value of your pension could fall on you for taking an ‘unauthorised payment’ from your pension fund in this way. In addition, fees deducted from your pension for the transfer are unlikely to be recovered. Such fees tend to be very high and could be 20% or more of your pension savings in some cases. Most of the time, people targeted by pension fraudsters or scammers are not informed of the potential tax consequences involved.

LPP is well aware of these schemes and have a rigorous process in place to minimise the possible transfer into one of these arrangements.

LPP’s administration teams only allow the transfer of pension benefits into an ‘authorised’ company (subject to necessary paperwork) unless instructed by our Technical team.

Our Technical team will firstly go through the following checks before allowing the transfer. 
  • Check the HMRC list of ‘dubious’pension arrangements
  • Issue a letter to the member warning them of the dangers of pension liberation which will include the Pensions Regulator’s document on the subject and a declaration of understanding to be completed by the member.
  • Complete further checks with HMRC and the Pensions Regulator if we continue to suspect the transfer is related to pension liberation.

If you require any more information on pensions liberation please click here for the Action Fraud and Pension Advisory Service leaflet on Pension Liberation Fraud or feel free to contact us. 

 

 



Annual Benefit Statements

Annual Benefit Statements

Annual Benefit Statements are issued on an annual basis to all of our active and deferred members to show the value of your benefits. They are an important tool to help you plan for your retirement and to check that the personal information held by us is correct and up to date.

An Annual Benefit Statement Q&A document has been created to answer some commonly asked questions including how your benefits are calculated.

Did you know you can view your pension records online?

Our member self service enables you to view personal and financial information about your pension securely.         To access your account click here: axise.yourpension.org.uk.

Our secure system now allows you to:
  • View and update personal details and changes of address
  • Find out how much you will receive on retirement
  • Calculate the amount of additional lump sum you can take on retirement
  • View your service history, including any service which has been transferred
  • View your nominated beneficiaries

Why wait until your benefit statement comes through – sign up now and we will send you an activation code. 

 



Pension Freedom & Choice

With effect from the 6 April 2015, the Government have introduced ‘Freedom & Choice’ which will allow members of defined contributions schemes to access their pension pots from age 55 without the need to resort to annuities.

These changes do not affect the Local Government Pension scheme, however it is anticipated that some organisations will seek to encourage members with defined benefits scheme benefits to transfer to schemes that will allow such access, this is unlikely to be in the best interest of scheme members and anyone tempted to seek such transfer should access the Pension Wise website at www.pensionwise.gov.uk further checks against potential Pension Liberation Fraud would be carried out before any transfer would be paid.

A Q&A for LGPS members which covers the implications of the Freedom and Choice policy in respect of transfers of safeguarded benefits in the LGPS to defined contribution (DC) schemes offering flexible benefits is available here.



LGPS National Insurance Database

A data sharing project with other LGPS pension funds in England, Wales and Scotland has been undertaken in order to comply with legal requirements contained in the LGPS’s governing regulations.

Provisions contained in the LGPS Regulations 2013 mean that, if a member of the LGPS dies, it is necessary for the scheme’s administrators to know if the individual also had other periods of LGPS membership elsewhere in the country so that the right death benefits can be calculated and paid to the deceased member’s dependants.

LGPS National Insurance Database - Privacy Notice