The benefits of joining the Local Government Pension Scheme (LGPS) under current legislation are;
- Pension – a secure pension is payable to you for life, increased by the cost of living.
- Lump sum – the option to exchange part of your pension for a tax free lump sum upon retirement. Every £1.00 given up provides a £12.00 lump sum.
- Contributions flexibility – you have the option of contributing to the 50/50 section in times of hardship. Paying half contributions for half the pension.
- Employer contributions – your employer will also pay contributions to ensure your pension is properly funded.
- Protection for your family – the scheme provides life cover immediately upon joining as well as a pension for your surviving spouse/registered civil partner/nominated co-habiting partner and for eligible children if you die in service or die after leaving with a pension entitlement.
- Early retirement – you can retire from age 55 and receive your benefits immediately, although they may be reduced for early payment. If you are made redundant or retire on your employers efficiency grounds, aged 55 or over, your pension will not be reduced.
- Ill health retirement – if you leave work at any age due to permanent ill health your benefits may be paid straight away.
- Flexible retirement - if your employer agrees, you may be able to retire from age 55 in stages.
- Option to pay extra - You may increase your retirement benefits by paying extra contributions. These will also attract tax relief.