What happens to my LGPS if I am made redundant?
If you are made redundant or retired in the interests of business efficiency at or after age 55 you will, provided you’ve met the 2 years vesting period, receive immediate payment of the main benefits you’ve built up (but there would be a reduction for early payment of any additional pension you have chosen to buy).
How will being made redundant affect my pension?
If you are thinking about what redundancy means for your pension savings, the good news is that any pension you have built up is still yours, and you do not lose any of it due to your change in circumstances. However, any contributions made by your employer into your pension will stop.
Do you lose your pension if you are made redundant?
Essentially what happens to your pension when you are made redundant is nothing. Your company will stop paying into it and unless you do otherwise your payments will also stop going into it.
Does the 85 rule still exist?
If you were a member of the LGPS at anytime between 1 April 1998 and 30 September 2006, some or all of your benefits could be protected from an early payment reduction under what is called the 85 year rule. If you have 85 year rule protection this continues to apply from 1 April 2014.
What’s the difference between voluntary redundancy and compulsory redundancy?
The Difference Between Voluntary and Compulsory Redundancy Voluntary redundancy is when an employer offers a financial incentive to an employee to leave the company of their own free will. Compulsory redundancy occurs when an employer decides to reduce staffing, but they choose who leaves.
Is Lgps a good pension scheme?
The Local Government Pension Scheme is in good financial health and has, on limited resources, negotiated a host of changes in the past 10 years. Examples are the move to career average revalued earnings, to pooling and the change in regulator.
What is the difference between redundancy and voluntary redundancy?
We’ll break down the differences between the types of redundancy below. Voluntary redundancy is when an employer offers a financial incentive to an employee to leave the company of their own free will. Compulsory redundancy occurs when an employer decides to reduce staffing, but they choose who leaves.
Can I take redundancy and then retire?
Whether you opt to take voluntary redundancy, have been made redundant or choose early retirement with incentives provided by your employer, receiving a lump sum can accelerate retirement plans considerably.
Can I take my LGPS pension at 55?
Your LGPS pension is payable in full from your Normal Pension Age which is linked to your State Pension Age (but with a minimum of age 65). However, you can choose to retire and take your pension from the LGPS at any time from age 55 to 75, provided you have met the 2 years vesting period in the scheme.
What is the 65 rule?
The “rule of 65” recognizes that length of marriage cannot be the only factor in determining the duration of spousal support in marriages without dependent children. Age is also a significant factor as it affects the ability to become self-supporting.
Is it better to take voluntary redundancy or compulsory?
Voluntary redundancy packages typically offer more in terms of financial compensation to employees than compulsory redundancy. A voluntary redundancy package will typically go over and above these limits to incentivise staff and increase interest in your offer.
Do you get more money if you take voluntary redundancy?
Typically, you’ll receive more money if you take voluntary redundancy instead of compulsory redundancy. In order to make voluntary redundancy attractive to employees, they make the redundancy pay package larger than the statutory redundancy pay.
What happens to my LGPS pension if I am made redundant?
If your employer makes you redundant or dismisses you on efficiency grounds, and you are at least age 55, the LGPS pension from that job will be paid.
Where can I find more information about Scotland’s local government pension scheme?
You can find all the information you need about Scotland’s Local Government Pension Scheme by visiting the LGPS website including how your pension is calculated, when you can take your benefits and the various options you have for making contributions.
What happens to my pension if I am made redundant?
Your pension will not be paid if you are dismissed on redundancy or efficiency grounds before age 55 – instead, your pension will become deferred (frozen). Only the pension you are contributing to will be paid. If you have any deferred LGPS pensions, they will not be paid at the same time.
How does flexible retirement work with the LGPS?
If your employer agrees to flexible retirement you can still draw your wages / salary from your job on the reduced hours or grade and continue paying into the LGPS, building up further benefits in the scheme. Your election to receive benefits has to be made to your Pension Fund.