Councillor pensions
Contents
- Overview
- When you elect to receive your deferred benefits under the amended regulations
- Claiming Payment of your Deferred Benefits
Overview
The Local Government Pension Scheme (LGPS) is a statutory, funded pension scheme. Its benefits are defined and set out in law. This following information is for Councillors of the Tyne and Wear Pension Fund.
When you can elect to receive your deferred benefits under the amended regulations
Deferred benefits become payable at age 65 (unless you opt to defer payment beyond that age), but you can choose to take payment from age 55. You do not need your former council's consent to take payment of your benefits from age 55 but they will normally be reduced (as detailed on page 14 of the Guide to the LGPS for Eligible Councillors booklet on this page) to take account of the fact that they will be paid for longer. If you do not contact us about payment we will not write to you until such time as your deferred benefits must be paid.
If you were contributing to the scheme at any time between 1 April 1998 and 30 September 2006 and you are a protected member, some or all of your benefits could be protected from the reduction. However, if you choose to voluntarily draw your pension on or after age 55 and before age 60, the protection will not automatically apply. Your former council can choose to allow the protection to apply - this is a discretion and you can ask your them what their policy is on this matter.
You can also ask to take payment of your benefits early on or after age 50 and before age 55, with your former council's consent. Your benefits would normally be reduced for early to take account of the fact that they will be paid for longer. If your benefits are paid before the age of 55 they will be subject to significant tax charges (in addition to normal income tax).
Your former council can agree not to make any reduction for early payment on compassionate grounds. This is a council discretion; you can ask your council what their policy is on this matter.
In addition, your benefits can be paid from any age in the event of ill health, without reduction.
Claiming Payment of your Deferred Benefits
We will automatically write to you when your deferred benefits are due to be paid, however you claim payment before this date. You can do this by either:-
· Applying online through your mypension account. Please go to the 'My Membership Details' tab and choose the 'Request Payment of My Pension' option to submit your request, or
· you can complete a CARE65 form.
Please note that we can only accept requests that are within 3 months of the retirement date, which must be from age 55 or over. We will write to you with your retirement options and further information closer to your requested retirement date.
Further information can be found on the LGPS national website on the Councillor pensions page.