Annual benefit statement queries

Annual Benefit Statement

FAQs for members paying into the Scheme

Watch our video explanation of your benefit statement for active members.

 

 

Where can I see my statement?
How can I change of address?
Can I take a lump sum at age 55 without taking the rest of my pension?
Why is the amount added to my pension not the same as the pension contribution I pay?
What is the Career Average Pension element of my pension?
What is the Final Salary Pension element of my pension?
Can I pay extra towards my pension?
I have a Certificate of Protection, what does this mean?
What is the projection to Normal Pension Age?

If you still have questions after reading the information provide on the Member Section of our website and in the Help Hub, visit the Contact Us section.


 

 

Where can I see my statements?

Statements are prepared by the end of August each year.Annual Benefit Statements for members paying into the Scheme on 31 March each year are an estimate of your benefits earned to date, based on the information provided by your employer.

The annual newsletters to members are sent out over the summer period.  Your annual benefit statement will be available by logging into My Pension Online, choosing documents and forecasts, by 31 August each year.


 

How can I change my address

If you've not received any communication from us, it could be that we don't hold a current address for you, or that we've an out of date address for you.
Please register and log in to My Pension Online to update your address.  If you're paying into the Scheme, make sure you also let your employer know your new details as they may overwrite any updates made on our system.  Please ensure you include both your previous address we may hold and new address to allow us to update your record.

 

 

 

Can I take a lump sum at age 55 without taking the rest of my pension

The Local Government Pension Scheme (LGPS) is a Defined Benefit pension scheme, which guarantees to provide you with an income for life. While other pension schemes such as Defined Contribution schemes offers flexible access to your pension through drawdown allowing members to take 25% of their pension pot tax-free from the age 55, there is no provision in the LGPS to take a lump sum without taking the rest of your benefits. 

 

 

 

Why is the amount added to my pension not the same as the pension contribution I pay?

Each month your employer takes pension contributions from your pay which you'll see on your payslip. The pension contributions are used towards the cost of the pension you'll be paid every year when you retire.  This is instead of being put in a pot and when you retire you buy an income to use as a pension as with many private pensions. The amount shown on the statement is the actual amount of yearly pension and lump sum built up to 31st March and would be paid if they retire at their Normal Pension Age.

 

 

 

What is the Career Average element of my pension? 

Your Career Average membership builds up each year when you're in the Scheme at 1/49th of your pensionable pay or half that if in 50/50 section.  These benefits go up every April by the Consumer Prices Index (CPI) at September. CPI for April 2020 was 1.7% and was applied on 1 April 2020, this will be included in your forecast to 31 March 2021.  Please note, Final Salary and Career Average benefits can't be paid separately.

 

 

 

What is the Final Salary element of my pension?

Any membership you built up before 31 March 2015 is shown in this section of your forecast.  The Normal Pension Age (NPA) for these benefits is protected and for most remains age 65.
Final salary benefits were built up at different rates due to past scheme rules.
  • Membership before 1 April 2009 - 1/80th of final pensionable pay (Final Salary definition) plus an automatic lump-sum of 3 x annual pension. 
  • Membership between 1 April 2009 and 31 March 2015 - 1/60th of final pensionable pay (Final Salary definition). 
The service used to work out your final salary pension benefits can be seen on the My Pension Online service and was provided by your employer. Please check your pay and service. Some of your service may also be recorded within a separate pension account or as a deferred benefit. Once you have logged in, you can switch between records by choosing the green arrow on the right side of your My Pension Online dashboard.  If you worked part-time at any time before 1 April 2015, your membership will be worked out based on the actual hours you worked. 
 
The full-time equivalent pay is always used to work out your benefits for membership before 1 April 2015. If you’re over age 60, your benefits are normally shown with any reduction for early or late payment, however a software error meant these weren’t include in the 2020 forecast.  Please use the calculator within My Pension Online to see your reduced/enhanced benefits. 
Please note, Final Salary and Career Average benefits can't be paid separately.



Paying extra towards my pension

If you’ve made Additional Pension Contributions (APCs) in the year, these are shown in the CARE breakdown of your forecast.  APCs made in previous years are included within the total opening balance and are shown in previous forecasts and within the My Pension Online service. Please refer to your previous online forecasts for the amount built up in previous years. If you pay Additional Regular Contributions (ARCs) or Added Years contributions, the proportion built up to 31 March of the statement is included in the Final Salary benefits shown. These are also  shown within the My Pension Online service. The full proportion you will have paid up by the end of your contract is included in the projection to your Normal Pension Age. If you pay Additional Voluntary Contributions (AVCs) to Standard Life or Prudential, you'll be sent a statement direct from your provider each year.  These aren't included in your Annual Benefit Statement as the value is not known until retirement. If you are considering making additional payments visit www.lpf.org.uk/payextra for more information and how to apply.

 

 

Certificate of protection

If your employer has issued you a certificate of protection, the figures shown in this forecast don’t take this into account.  Certificates of protection last for ten years and will be applied if you leave or retire within the ten year period.

 

 

Projections to Normal Pension Age

Your Normal Pension Age is the age your benefits can be paid without reduction, which is linked to the State Pension Age with a minimum of age 65.
 
The projection to your Normal Pension Age within your Annual Benefit Statement assumes your pensionable pay, and any additional pension contributions, are unchanged to Normal Pension Age.  If you have passed your Normal Pension Age, your current pension will be shown on your Annual Benefit Statement. You can estimate your benefits at different retirement dates using the My Pension Online service
The projection within your Annual Benefit Statement is based on your current pensionable pay and the section of the Scheme you were in at 31 March the year of the statement. If you work beyond your Normal Pension Age, your benefits will be increased due to late retirement. The factors are subject to change and those in force at the time of your retirement will be applied.
For example:
  • if your NPA is age 67 and take your pension benefits at age 66, the Career Average benefits would be reduced as they would be taken one year early.
  • but your Final Salary benefits would be increased as they are being taken one year after the protected NPA of age 65.
Your Normal Pension Age for benefits built up after 1 April 2015 may change in the future as it is linked to the State Pension Age and is set by the UK Government. Benefits built up before 1 April 2015 retain a protected NPA of age 65.