What happens to my local government pension if I am made redundant?

What happens to my local government pension if I am made redundant?

Redundancy and efficiency retirement If you are made redundant or retired in the interests of business efficiency when you are over age 55, you will receive immediate payment of the pension you have built up – providing you have met the two year vesting period.

What is the 85 year rule?

The 85 year rule is where we take a member’s age and qualifying years of service in the Scheme, and if it comes to 85 or over at the point they wish to take their benefits, and they’re aged over 60, it means they may be able to take their benefits unreduced at that point.

Is the LGPS a defined benefit scheme?

The LGPS is what’s called a ‘defined benefit’ pension. The benefits you receive from a defined benefit pension are set out in the rules of the scheme. The amount you need to pay to be a member in is also set out in these rules.

What’s the difference between AVC and APC?

APCs can be paid in a lump sum via payroll, or directly to GMPF, or by regular contributions via your payroll. AVCs are paid by regular contributions via your payroll.

Is LGPS pension for life?

As an LGPS member, you build up a pension that will increase in line with the cost of living for the rest of your life after you take it. You can exchange part of your pension for a tax-free lump sum that is paid when you take your benefits.

Can I take my pension at 55 or 57?

You can start taking money from most pensions from the age of 60 or 65. This is when a lot of people typically think about reducing their work hours and moving into retirement. You can often even start taking money from a workplace or personal pension from age 55 if you want to.

Is the LGPS a final salary scheme?

The LGPS changed from a final salary scheme to a career average scheme on 1 April 2014.

Can I take my council pension at 55?

You can take your LGPS pension at any time from age 55 to 75, as long as you have met the two-year vesting period. You must take your pension by age 75. If your employer agrees, you can even take your pension without leaving your job – this is called flexible retirement.

Are AVCs worth it?

AVC pensions are eligible for government tax relief on pension contributions, which gives a significant boost to everything you save into them. As a result, an AVC pension can be a particularly tax-efficient option for people with higher incomes, as it allows you to save more of your money to enjoy in later life.

Can I get redundancy insurance?

You’ll pay monthly premiums and if you’re made redundant involuntarily during this time and make a successful claim, your redundancy insurance policy will pay out. Most policies provide financial cover for up to 12 months and can pay 50-70% of your annual income before tax.

Can I take 25% of my pension tax free every year?

You can take money from your pension pot as and when you need it until it runs out. It’s up to you how much you take and when you take it. Each time you take a lump sum of money, 25% is tax-free. The rest is added to your other income and is taxable.