Retired and Dependant Members
When you become a member of the Local Government Pension Scheme multiple decisions are made in respect of your membership. Some decisions are made by your employer or former employer, whilst some are made by the administration authority for the Clwyd Pension Fund which is Flintshire County Council.
It is advised that if you are notified of a decision, that you should check with the decision maker that it has firstly been based on the correct information. When notified of a decision, contact details will be provided so you can query any uncertainties and be provided with details of the rights of appeal under the LGPS regulations.
What can be appealed?
Administration Authority Decisions
- The person’s previous employment
- Additional periods as membership
- Crediting additional annual pension
- The amount pensionable benefits
- Any return of contributions
Employer’s First Instance Decisions
- Eligibility for membership
- Pensionable pay or final pay
- Contribution rate (employee’s)
- Entitlement to benefit on termination of - Entitlement to early release of pension
- Decisions under Regulation 72(4) “A person's Scheme employer must decide any question concerning any other matter relating to the person's rights or liabilities under the Scheme.”
If your appeal does not fall under any of the criteria noted, you will not be entitled to appeal via the IDRP. You cannot appeal just because you are unhappy with a decision. You must clearly state why you feel that you meet the regulatory criteria or that new evidence should be considered.
I wish to make an appeal, what should I do?
Often a problem can be resolved quickly by contacting the decision maker directly. Whether this is your employer or the Clwyd Pension Fund, the decision may have evolved from incorrect information being used or an initial misunderstanding.
Both scenarios can therefore be explained and easily amended by contacting the decision maker by telephone or in writing. Many problems are resolved this way, so please bear this in mind as it may save you time.
What is Internal Dispute Resolution Procedure (IDRP)?
If an agreement cannot be made between the applicant and the decision maker, within the LGPS Regulations 2013, Regulations 72 to 79 detail the formal dispute procedure known as the IDRP.
The process is split into two stages. If you are unhappy with a decision following Stage 1, or a decision has not been made in reasonable time under the dispute rules, you have the right to have it looked at afresh via stage 2 appeal.
Who can submit an IDRP disagreement?
A disagreement can be submitted by the following people:
(iii) surviving civil partners
(iv) surviving cohabiting partners
(v) dependants of a deceased member
(vi) prospective members
(vii) former members
Payable to eligible children and increase every year in line with the cost of living (Consumer Prices Index), however, the pension benefits depend the eligibility of the child/children, the number of eligible children there are and whether there is a survivors pension being paid.
Who is an eligible child?
- Natural or adopted child who was born before, on, or in the case of a natural child, within the following 12 months' of the member's death
- Step child or a child accepted by the deceased member as a member of the family (excluding a child sponsored by the member through a registered charity) who was dependent on the member at the date of death.
The above eligible children must also meet the following conditions:
- Under age 18, or
- Aged 18 and 23 and in full-time education or vocational training
- Unable to engage in gainful employment because of physical or mental impairment and either:
- has not reached the age of 23, or
- the impairment is, in the opinion of an independent registered medical practitioner, likely to be permanent and the child was dependent on you at the date of your death because of that mental or physical impairment.
In this context gainful employment means paid employment for not less than 30 hours in each week for a period of not less than 12 months.
- Education must be full-time and continuous, although the administering authority may treat education or training as continuous despite a break.
- The administering authority may also suspend payment of any entitlements to a children's pension during any break in education of training (school holidays do not break the continuity of education).
- The administering authority will generally decide what it regards as training for a trade or vocation, some might consider a paid apprentice to not qualify.
Upon death the Clwyd Pension Fund will wish to verify details concerning any child who may become entitled to a children's pension with reference to:
- the child's birth or adoption certificate;
- proof of continuous full-time education;
- evidence of training for a trade, profession or vocation; and
- proof of dependency (2008 scheme, or for a step-child)
- evidence of permanent disability (IRMP opinion under 2014 regulations if over 23)
By asking for the above details, the Clwyd Pension Fund will then assess whether or not the child falls within the definition of an 'eligible child' under the regulations
Calculating the Children's Pension
No survivor's pension being paid
One child would receive:
- Pre 31/03/2014: 1/240th x final pay x membership built up to 31/03/2014
- Post 01/04/2014: 1/240th x final pay x membership built following 01/04/2014
- Transfers in: 49/240ths of the amount of any pension credited following a transfer.
- Enhancement: 1/240th of your assumed pensionable pay from date of death to NPA
Two or more children would share the following:
- Pre 31/03/2014: 1/120th x final pay x membership built up to 31/03/2014
- Post 01/04/2014: 1/120th x final pay x membership built following 01/04/2014
- Transfers in: 49/120ths of the amount of any pension credited following a transfer.
- Enhancement: 1/120th of your assumed pensionable pay from date of death to NPA
Survivor's pension being paid
One child would receive:
- Pre 31/03/2014: 1/320th x final pay x membership built up to 31/03/2014
- Post 01/04/2014: 1/320th x final pay x membership built following 01/04/2014
- Transfers in: 49/320ths of the amount of any pension credited following a transfer.
- Enhancement: 1/320th of your assumed pensionable pay from date of death to NPA
Two or more children would share the following:
- Pre 31/03/2014: 1/160th x final pay x membership built up to 31/03/2014
- Post 01/04/2014: 1/160th x final pay x membership built following 01/04/2014
- Transfers in: 49/160ths of the amount of any pension credited following a transfer.
- Enhancement: 1/160th of your assumed pensionable pay from date of death to NPA
Retire before 1st April 1998
Short Term pension
Short term pensions were removed from the regulations on 1st April 2008, but those members who retire before then still have this entitlement in respect of their survivors.
If there is no surviving spouse, there will be a short-term pension payable to any eligible children for 6 months.
If there is a surviving spouse and the children are in their care, then a child's short-term pension is payable for 3 months, but is reduced by the amount of spouse's short term pension payable; i.e. there is effectively no entitlement to a children's short-term pension.
If there is a surviving spouse but the children are not in their care, then a child's short-term pension is payable for 3 months following death.
If the deceased was a pensioner member, then the short-term pension is equal to his retirement pension immediately before the death.
A pensioner member includes a person whose retirement pension has been commuted under the former provision for exceptional ill health and benefits are calculated by reference to the amount of pension which would have been due but for the reduction on commutation.
Long Term pension
If a member dies leaving one or more eligible children, they are entitled to a child's long-term pension.
Where the deceased was a pensioner member, the long-term pension will become payable when the short-term pension ends, and is payable for as long as the children remain within the definition of eligible child.
If a member's retirement pension has been based on a period of membership of less than ten years, or the period he would have been entitled to count if his active membership continued until his 65th birthday, whichever is the shorter, then that period should be used when calculating a long term child's benefit.
Unlike widowers'/civil partner's benefits, a child's pension is based on all service and not just service after 6.4.88.
Retire after 1st April 1998
If the member retires after 1 April 2008, there is no short-term pension.
No longer an eligible child?
If the pension has been split between more than one eligible child, when one of the children no longer meet the criteria of an eligible child, the total pension is split in equal shares amongst the remaining eligible children.
For example if the total pension was £1,200 split amongst 4 children in equal shares of £300 (£1,200 / 4) and the eldest child leaves full-time education, the remaining 3 children would receive equal shares of £400 (£1,200 / 3) each, when two remained the shares would be £600 (£1,200 / 2) each until one eligible child remained when the payment would remain £600.
In the event of a divorce or dissolution of a civil partnership, you may wish to get legal advice regarding how your LGPS will be affected. You and your partner will need to consider how to treat these pensionable rights as part of any settlement, which can divide your pension in a variety of ways.
Following a divorce or a civil partnership dissolves:
- Your ex-spouse or ex-civil partner will cease to be entitled to a spouse or civil partner pension should you die before them.
- All children's pensions paid to eligible children in the event of your death shall not be affected following the divorce or dissolution
- If you had nominated your ex-spouse or ex-civil-partner to receive any death grant following your death by completing an expression of wish form, this will remain in place unless changed.
This is because the Court may issue an Earmarking Order stating that all or part of the death grant shall be payable to your ex-spouse or ex-civil-partner following your death.
Requesting pension figures for divorce purposes
If your solicitor has asked for a Cash Equivalent Transfer Value (CETV) of your LGPS benefits, this should be requested in writing via email or post.
Please make sure you notify us of your
- Name, NI number and state that you wish to request a CETV for DIVORCE PURPOSES
This is because a different calculation is actioned for CETV for transfer purposes
Offsetting your pension rights
You can offset the value of your pension rights against the value of other financial assets in your settlement. For example, you could keep your pension and your partner could get a larger share of the value of the house.
Following an Earmarking Order the LGPS benefits still belong to the member, but some are designated for your ex-spouse or ex-civil partner and your benefits will be reduced.
This allows your ex-spouse/ex-partner to receive all or part of your LGPS pension and all or part of any lump sum payable on your death.
Earmarking has limitations and is not widely used. If your ex-spouse remarries or your ex-civil partner enters into a new civil partnership, any earmarked pension payments would cease and the full pension would be restored to the member. These payments would also cease on your death (although any earmarked lump sum death grant would then become payable to your ex-spouse/ex-civil partner).
Pension Sharing Order
If the Court makes a Pension Sharing Order, part of your benefits will be transferred into your ex-spouses or ex-civil partners possession, and they shall keep these benefits even if your future circumstance change.
Your ex-spouse or ex-civil partner will then hold these benefits in their own right and hold their own individual record with the Clwyd Pension Fund. These benefits can be drawn as though they were member’s pensionable benefits and can be drawn once they reach pensionable age (with any reductions if applicable) or transferred out to another qualifying pensionable scheme.
Similar to any member’s pensionable benefits, this Pension Sharing Order must be taken prior to their 75th birthday.
Effect upon member’s benefits
At retirement, this Pension Sharing Order amount will simply be deducted from the member’s total pension, this deducted amount is known as Pension Debit.
Pension Debit - Similar to deferred benefits, a Pension Debit shall increase in line with cost of living between the date it was first calculated and the date the benefits are paid. Once paid as pensionable benefits to the ex-spouse or ex-civil partner, the re-valued amount of the Pension Debit will be deducted from the member's retirement benefits.
Members may be able to top up their benefits by buying extra pension through Additional Pension Contributions (APCs) or Additional Voluntary Contributions (AVCs) directly alongside their LGPS benefits, or by paying into a personal/stakeholder pension plan in order to make up for the benefits 'lost' following a Pension Share.
You can still transfer your remaining benefits to another pension arrangement on leaving the LGPS. If you transfer within the LGPS, your new fund will reduce your benefits by the Pension Debit at retirement.
A further divorce / dissolution
If you remarry or form a new civil partnership, and then get divorced or dissolve your new civil partnership, your missing pension rights may be subject to another split, although a pension sharing order cannot be made if there is an earmarking order has already been put against your Local Government Pension Scheme pension entitlements.
Receiving a Pension
Whether you are an ex member of the Local Government Pension Scheme, or receive a pensionable income as a surviving spouse or child, you will receive an income from the Clwyd Pension Fund.
Either way, your Annual Pension will be paid into your chosen Bank or Building Society account in 12 monthly instalments. Pensions are normally paid on 28th of each month. Where the 28th is a Saturday or Sunday (or a Bank Holiday) payment will be made on the Friday before, whilst Decembers pay shall be earlier due to Christmas.
We will send you your first pension pay advice slip when your pension is paid for the first time and you have, following this details of each payment will only be sent to you if your net monthly pension changes by £5 or more.
Changes are likely to occur each April when the annual Pensions Increase is applied to your pension and again possibly in May or June when any new tax codes are applied.
Pensions Increase for 2021 is 0.5%
Your annual pension is reviewed each April, so that it reflects the cost of living. The amount of Pensions Increase is based on an index specified by the Government. Pensions Increase is currently based on the change in the Consumer Prices Index in the 12 month period up to the end of the previous September.
Please note that you will only receive the full increase if your pension began on or before 27th April 2020, if not, the increase on your pension will be pro-rated as per the table below:
|On or before 27/04/2020||0.50%|
|28/04/2020 - 27/05/2020||0.46%|
|28/05/2020 - 27/06/2020||0.42%|
|28/06/2020 - 27/07/2020||0.38%|
|28/07/2020 - 27/08/2020||0.33%|
|28/08/2020 - 27/09/2020||0.29%|
|28/09/2020 - 27/10/2020||0.25%|
|28/10/2020 - 27/11/2020||0.21%|
|28/11/2020 - 27/12/2020||0.17%|
|28/12/2020 - 27/01/2021||0.13%|
|28/01/2021 - 27/02/2021||0.08%|
|28/02/2021 - 27/03/2021||0.04%|
Pensions are normally paid on the 28th of each month. Where the 28th is a Saturday or Sunday (or a Bank Holiday) payment will be made on the Friday before, whilst Decembers pay shall be earlier due to Christmas.
If you are expecting to be paid your LGPS pension for the first time, the Clwyd Pension Fund does provide immediate pension payments at intervals throughout the month and will attempt to pay the benefits at the earliest opportunity.
The upcoming financial years pay dates are as follows:
- 28th April 2021
- 28th May 2021
- 28th June 2021
- 28th July 2021
- 27th August 2021
- 28th September 2021
- 28th October 2021
- 26th November 2021
- 17th December 2021
- 28th January 2022
- 28th February 2022
- 28th March 2022
Can my pension be paid into a foreign bank account?
From June 2020, the Clwyd Pension Fund has partnered with Western Union Business Solutions, part of the Western Union Group.
Western Union Business Solutions are a leader in global payment services and offer significant benefits to our administration of your overseas payments. This partnership will also ensure that the £2.74 monthly transaction charge, you currently pay, will no longer be charged to you.
In addition to your LGPS benefits, you may also qualify for a state retirement pension paid by the government from State Pension Age.
A new single tier, flat rate State Pension has been introduced for people who reach State Pension age on or after 6 April 2016. It replaces the basic and additional State Pension that is payable to people who reached State Pension age before 6 April 2016. You will be able to claim the new State Pension when you reach State Pension age if you’re:
- a man born on or after 6 April 1951
- a woman born on or after 6 April 1953
- and, normally, have at least 10 years qualifying years on your National Insurance record.
Start planning for retirement
As a member of the Local Government Pension Scheme you were previously 'contracted out' of the additional State Pension and therefore received a rebate on your National Insurance (NI) contributions. From 6 April 2016 this rebate ceased and the LGPS is no longer 'contracted out'.
You should be aware that, as a member of the LGPS, if you are eligible for the new State Pension you might not receive the full amount. This is because as a member of the LGPS you are likely to have paid a lower amount of National Insurance in previous years.
LGA have produced a Topping Up Your State Pension Guide, listing the various ways that an individual may top up their State Pension, depending on their personal circumstances and when they reach their State Pension Age.
Find out your State Pension Age
If you do not know what your State Pension Age is you can use www.gov.uk/calculate-state-pension to find this out.
This is the earliest age you can receive the state basic pension. State Pension Age is currently age 65 for men. State Pension Age for women is currently being increased to be equalised with that for men and will reach 65 by December 2018.
Following the death of a pensioner, survivors' pensions become due from the date immediately following the death of the member. There may be a dependants pension payable to a surviving spouse or partner but the following criteria applies when determining whether a dependant member is eligible for a dependant members pension.
- If membership ceased before 1 April 1998, pension benefits are only payable to legally married surviving spouses.
- If membership ceased between 1 April 1998 and 31 March 2008 inclusive, pension benefits are payable to legally married surviving spouses or surviving civil partners.
- If membership ceased on or after 1 April 2008, pension benefits are payable to a surviving legal spouse, civil partner or nominated cohabiting partner (providing a nomination has been made and all the criteria are met).
- If membership ceased on or after 1 April 2014, pension benefits are payable to a surviving legal spouse, civil partner or cohabiting partner (providing all the criteria are met).
No benefits are payable if the marriage or civil partnership has been legally dissolved or if the declaration of cohabitation has been cancelled or is found to be invalid.
Members who retired before 1st April 1998
Short term pension
For pre 1st April 1998 retirees there is a short-term pension payable to eligible survivors equal to the member's retirement pension immediately before the death.
The length of the short-term pension depends on whether there is an eligible child. Where there is an eligible child in the spouse's care, the short-term pension is payable to the spouse for 6 months. If there is no eligible child, the short-term pension is payable to the spouse for 3 months. If there is a surviving spouse but the children are not in their care, then a short-term pension is payable for 3 months following death.
Long term pension
Where the deceased was a pensioner member, the long-term pension will become payable when the short term pension ends.
Following the death of a pensioner, the rate of the pension is calculated as 1/160 of the final pay, multiplied by the membership the deceased had accrued until date of retirement or date of leaving.
Members who retired after 1st April 1998
All membership now counts for widows', widowers' and civil partners' benefits. The same short-term and long-term requirements apply as above; the only change was to the membership that could be included in the calculation of the benefits.
For members with nominated partners, membership before 6 April 1988 would still not count for these purposes.
From the 1 April 2008 the short-term pension is no longer applicable.
As before any 2014 scheme pension is treated as having accrued at 1/160 to calculate the survivor’s pension, with transfers treated as 49/160 of their value.
Post Retirement Marriages
Where a deferred member or pensioner marries after they have ceased membership, the survivor's pension is based on the following periods of membership:
- Widows - membership from 6 April 1978 or date of commencement of membership if later.
- Widowers - membership from 6 April 1988 or the date of commencement of membership if later
- Cohabiting Partners - membership from 6 April 1988 or the date of commencement of membership if later
The Pensions Payroll Section will deduct Income Tax from your pension using the Tax Code on your P45 until we receive a new Tax Code from the Tax Office.
If you don't retire straight from work with an LGPS scheme employer, or we don't receive a P45 for you, then the Pensions Payroll Section must apply an Emergency Tax Code to your pension payments, until the Tax Office tell us the Tax Code to use.
Amended tax codes
When we receive a Tax Code we'll refund any overpayment of tax or collect any arrears of tax due.
We will send you a P60 at the end of each tax year, usually in May. This will show the total pension we have paid you and the amount of tax (if any) we have deducted in that year. You must keep this P60 as it may be required for tax purposes.
From 2018, these will only be available through Member Self Service unless a written request is made.
The HM Revenue & Customs Tax Office determines your Tax Code, rather than the Clwyd Pension Fund. If you want to query the Tax Code that has been applied to your pension, please contact:
HM Revenue & Customs
HM Revenue & Customs treat your pension as 'earned income' and the Clwyd Pension Fund has to deduct Income Tax from any pension payments we make to you, as instructed by the Tax Office.
When you retire straight from work with an LGPS scheme employer (unless you're taking Flexible Retirement,) your employer must issue a P45 Form for income tax purposes. They should give part 1A to you and send all other parts to the Clwyd Pension, who will then forward your P45 details to the Tax Office.
HM Revenue & Customs have Local Enquiry Offices which may also be able to help with your Tax Code enquiry.
Telephone: 0300 200 3300
For PAYE queries
HM Revenue & Customs , Pay As You Earn, PO Box 1970, Liverpool, L75 1WX
HM Revenue & Customs, Self-Assessment, PO Box 4000, Cardiff, CF14 8HR