From the 1st April 2014, changes to the LGPS require that a councillors active membership is terminated at the end of their current term of office.
As long as you have 3 months membership or you have transferred in other pension rights, you will have built up valuable Local Government Pension Scheme (LGPS) benefits that form an important part of your savings for retirement.
On leaving you have 2 options:
- choose to keep your benefits in the LGPS - these are known as deferred benefits and will increase every year in line with the cost of living.
- alternatively, you may be able to transfer your deferred benefits to a new pension arrangement.
Less than 3 months membership
If you have less than 3 months membership and you have not transferred in any other pension rights and have not previously transferred LGPS benefits to an overseas scheme, you do not qualify for deferred pension benefits.
On leaving you have 3 options:
- claim a refund of your contributions
- the possibility to transfer to a new pension arrangement
- delay your decision until you know what you would like to do - this is known as a frozen refund.
Pension Scams - A warning from the Pensions Regulator
The Pensions Regulator has produced a Pension Scams leaflet warning scheme members of potential pension scams. If you have been approached to transfer out your pension, or are looking for ways to release the monies from your fund early, you are advised to read this booklet before making any decisions.