The Department for Communities and Local Government (DCLG) have announced that the way pensions will be increased, for those retiring after their normal retirement age, will change for pension benefits that become payable from 4th January 2017 and will affect the whole of the increase they would be due.

This information is being released now so that those planning for retirement can see how they will be affected and make an informed decision.

We will be writing to all members who would be eligible for a late retirement increase, if they were to take payment of their benefits before 4th January 2017, to inform them of this impending change.

Further details of the changes to the Late Retirement increases can be found in the Late Retirement Actuarial Guidance from the Government Actuarial Department.

 

Who will be effected and how?

For active members:

Date Pension becomes payable (day after last day of employment) Membership before 1 April 2014 Membership after 31 March 2014 Lump Sum in respect of pre 1 April 2008 membership
Pension payable before & including 3 January 2017 0.014% each day from

65 years to date of retirement

0.014% each day from the later of either 65 yrs or SPA to date of retirement 0.007% each day from 65yrs to date of retirement
Pension payable 4 January or after 0.010% each day from 65 to date of retirement 0.010% each day from the later of either 65 yrs or SPA to date of retirement 0.001% each day from 65yrs to date of retirement

For deferred members:

Date Pension Payable from Membership before 1 April 2014 Membership after 31 March 2014 Lump Sum in respect of pre 1 April 2008 membership
Pension payable before

& including 3 January 2017

0.014% each day from 65 years to date of retirement 0.014% each day from the later of either 65 yrs or SPA to date of retirement 0.007% each day from 65yrs to date of retirement
Pension payable 4 January or after 0.010% each day from 65 to date of retirement 0.010% each day from the later of either 65 yrs or SPA to date of retirement 0.001% each day from 65yrs to date of retirement