Section 1 – Personal and employment information as at 31 March 2016
Personal details – it is important that you let us know if any of your personal details, including your address and partnership status, are incorrect. If you have not informed us of your partnership status the figures on your statement are based on the assumption that you are married.
Should you wish to update your personal details please complete an Update form and return this to us.
Date joined Fund - the date you joined the Fund, in the employment that the statement refers to, is shown here. You may hold separate pension benefits with this Fund, or have transferred in previous pension rights, that commenced on an earlier date.
If you have joined previous pension rights to this employment, the figures will be included in the calculation of your benefits shown on the statement.
If you hold another active employment, that commenced before 1 April 2016, for which you are also a member of the LGPS, you will receive a separate statement for that employment.
If you hold a separate deferred pension with the LGPS, that finished before 6 April 2016, which you have not joined to this employment, you should have received a separate statement for this earlier in the year.
Section of the LGPS - the section of the LGPS that your employer has informed us you were in, on 31 March 2016, is shown here. If you believe this to be incorrect please contact your employer directly.
Section 2 - Your summary of total benefits as at 31 March 2016
This section shows your pension benefits, in the LGPS, for the employment you were in on 31 March 2016. It includes figures for both your Career Average (CARE) pension, and your Final Salary pension, if applicable. It does not include any in house Additional Voluntary Contributions (AVCs) that you may have.
Your Normal Pension Age (NPA) is the age at which you can retire on full pension benefits. If you retire before your NPA, your benefits may be reduced. Any reduction is NOT included in this statement.
Standard benefit option - this shows the annual pension you are entitled to as at 31 March 2016.
Lump sum retirement grant (for membership before 1st April 2008) - this figure is the tax free automatic lump sum retirement grant you are entitled to, in respect of membership before 1 April 2008. If you do not have a figure in this section it is because you were not a member of the LGPS before 1 April 2008, in the employment that this statement relates to.
Maximum lump sum option - you have the option to reduce the amount of pension you receive to increase the tax free lump sum. If you choose to do so, every £1 of pension ‘given up’ buys an additional £12 of lump sum, subject to HMRC limits. The figures shown here are for your maximum pension to lump sum conversion.
Section 3 - How your pension is calculated
This section shows the pay details that your pension benefits, as at 31 March 2016, have been based on. These figures have been provided by your employer. If you think any of these figures are incorrect you must contact your employer directly, rather than LGSS Pensions.
You should only have a pay figure in ‘Your Final Salary (FS) Pensionable Pay’ if you became a member of the LGPS, in the employment that this statement relates to, before 1 April 2014. This is the pay figure your Final Salary benefits are based on.
The pay figure shown against ‘Your CARE Pensionable Pay Main Section’ is the pay figure your Main Section Pension, built up during the Scheme Year (1 April 2015 – 31 March 2016), are based on.
The pay figure shown in ‘Your CARE Pensionable Pay 50/50 Section’ is the pay pay figure your 50/50 Section Pension, built up during the Scheme Year (1 April 2015 – 31 March 2016), are based on.
If you have figures in both CARE fields then you will have been a member of both Sections of the scheme at different times during the Scheme Year.
Section 4 – Your summary of total benefits on page 1 is made up of:
This section shows your pension benefits in more detail. Section 2 showed the combined value of your pension benefits, whilst this section shows separately the values of your Final Salary benefits (if applicable) and your CARE benefits.
Your Final Salary (FS) Pension Scheme - you will only have figures here if you contributed to the Scheme before 1 April 2014, in the employment that this statement relates to. We calculate your Final Salary pension here as follows:
- For membership to 31 March 2008 – 1/80th of Final Salary Pensionable Pay (shown in Section 3) for each year of membership (adjusted if you worked part time)
- For membership from 1 April 2008 to 31 March 2014 – 1/60th of Final Salary Pensionable Pay (shown in Section 3) for each year of membership (adjusted if you work part time)
Lump Sum Retirement Grant - this figure is the tax free automatic lump sum retirement grant you are entitled to in respect of membership before 1 April 2008. If you do not have a figure in this section it is because you were not a member of the LGPS before 1 April 2008, in the employment that this statement relates to. We calculate your Lump Sum Retirement Grant as follows:
- For membership to 31 March 2008 – 3/80th of Final Salary Pensionable Pay (shown in Section 3) for each year of membership (adjusted if you work part time)
Your total CARE account – This is the balance of your account to 31 March 2016.
In year build up – this section shows your CARE pension benefits in further detail. We calculate your CARE pension, for each Scheme Year you are a member, as follows:
- For membership of the Main Section of the scheme your CARE pensionable pay (shown in Section 3) will be divided by 49 and added to your pension account
- For membership of the 50/50 Section of the scheme your CARE pensionable pay (shown in Section 3) will be divided by 98 and added to your pension account
Additional Pension Purchased and Transfers In – here will be shown any Additional Pension Contribution (APC) you have purchased during the Scheme Year, plus any additional CARE pension purchased from a transfer in of previous pension rights.
Section 5 – Value of death in service benefits as at 31 March 2016:
This section shows the benefits that will be paid to your survivors should you die whilst an active member of the LGPS.
Annual Survivors Pension – this will be paid if you are married, have a civil partner or an eligible cohabiting partner, when you die.
If we do not hold a record of your partnership status, the pension figures here assume you are married. If the partnership status we hold for you is single or divorced the pension shown will be zero. If you have declared a cohabiting partner the pension shown is based on your post 5 April 1988 membership (and any pre 6 April 1988 membership purchased by an Additional Survivor Benefits Contribution)
Nomination details for death in service lump sum – here we list who you have nominated to receive any death grant that may be payable. If this section is blank we hold no record of your nomination.
Should you wish to make a nomination, or change an existing one please complete the Death Grant – Expression of Wish form and return this to us.
Section 6 – Projections if you remain in the scheme until your Normal Pension Age (NPA)
Projections if you remain in the scheme until your Normal Pension Age (NPA) – this section shows the value of your total pension benefits projected forward to your NPA.
Your Normal Pension Age (NPA) is the age you can retire on full pension benefits. This section shows the date you reach your NPA. Your NPA is now linked to your State Pension Age, or age 65 if your State Pension Age is earlier. If you retire before your NPA, your benefits may be reduced. Any reduction is NOT included in this statement.
We have provided a break down of your projected Final Salary and CARE pension benefits shown separately as ‘Projected Final Salary Pension built up to NPA’ and ‘Projected CARE Pension built up to NPA’. These are then added together and shown as ‘Total Projected Annual Pension at NPA’. You will only have a figure against the Final Salary projections if you contributed to the scheme before 1 April 2014, in the employment that this statement relates to. The figure against your Projected CARE Pension is for membership in the scheme from 1 April 2014.
The projected CARE benefits include any Additional Pension Contributions (APCs) or Shared Cost Additional Pension Contributions (SCAPCs) purchased, but exclude any deductions due to Scheme Pays or a Pension Sharing Order).
The NPA for Final Salary benefits remains at age 65, therefore if you have Final Salary benefits and your NPA is after age 65, these figures will show the actuarial increase in respect of the period from age 65 to NPA.
The figures in this section are based on your CARE pensionable pay and Final Salary Pensionable Pay (if applicable). For a full definition of pensionable pay, and any exclusions, please see here.
The projection of benefits is based on the Section of the scheme (Main or 50/50) that you were a member of on 31 March 2016.
Total Projected Lump Sum Retirement Grant – this is your lump sum retirement grant projected forward to your NPA. If you do not have a figure in this section it is because you were not a member of the LGPS before 1 April 2008, in the employment that this statement relates to.
We have also provided a projection of the Survivors Penson payable in the event of your death. This section provides a break down of your Projected Final Salary Survivors Pension at NPA and your Projected CARE Survivors Pension at NPA. These are then added together and shown as ‘Total Projected Survivors Pension ar NPA’. This pension is based on all your scheme membership, with some exceptions. A full list of those exceptions is detailed in question 10) of the faqs found here
Section 7 – Tax and your pension
This section shows you how much of your Lifetime Allowance has been used up to 31 March 2016, in relation to your standard LGPS pension benefits, in the employment that this statement relates to.
Lifetime Allowance is the limit on the total value of pension benefits you can take at retirement without incurring a tax charge on the amount over the limit.
The standard Lifetime Allowance is currently £1.25million.
More on Lifetime Allowance, other tax allowances, and what to do if you have exceeded the limit can be read here.