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Pension statement

Your 2017 pension statement explained

Click here to view an example of a pension statement together with brief explanations of the details it contains.

The LGPS changed from a Final Salary scheme to a CARE scheme on 01/04/2014. If you only have membership in the CARE scheme your statement won’t show any of the details relating to Final Salary benefits.

The notes below should also help you understand your 2017 pension statement.

Pay figures supplied by your employer

To be sure your benefits are correct, you must check that the pensionable pay figures on your statement are correct. If you think they are wrong, please contact your employer as soon as possible – they only have to keep pay records for six years.

Final Salary rate of pay

Your employer told us your annual rate of pay at 31/03/2017. We used this to work out your Final Salary benefits. If you work part time, your rate of pay is the full time equivalent pay for your job. We have used the same rate of pay to calculate your Final Salary benefits at your Normal Pension Date (NPD). When you leave or retire, the Final Salary benefits you built up to 31/03/2014 will normally be worked out on the pensionable pay you earned in your final year, or one of the two previous years if higher.

CARE pensionable pay

We have worked out your CARE pension using the actual pay you earned up to 31/03/2017. If you have been on reduced or no pay due to sickness, injury, child-related absence or reserve forces service leave this should include your assumed pensionable pay (APP) for those periods.

When we work out your projected benefits to normal pension date (NPD) we don’t allow for pay inflation. So we use the same pay to work out your CARE pension at your NPD as we do for your pension at 31/03/2017. And we’ll use your pay at 31 March to work out your CARE pension every year now.

Benefits at 31/03/2017

If you were 55 or more on 31/03/2017, your benefits do not include any early retirement reduction, which would apply if you had retired on this date. If you were past your NPD on 31/03/2017 the benefits quoted include a percentage increase for late retirement.

Normal Pension Date (NPD)

This is when you can retire and take all the pension you have built up without any reduction. NPD under the CARE scheme is linked to your state pension date (SPD) with a minimum age of 65. Your NPD may change in the future if the government changes your SPD. Final Salary benefits have a different NPD, which for most members is age 65.

Work out your state pension date by using the government's calculator or by using these government pdf look up tables.

Reduction factors applied when you draw your pension before your normal pension date

The table below shows the reductions applied in the new scheme if you decide to draw your pension early before your normal pension date. If you draw your pension at your normal pension date there is no reduction applied. We would apply the reductions depending on the number of years before your normal pension date you decide to draw your pension. This may be different for your Final Salary and CARE benefits. When the number of years is not exact, we adjust the reduction percentages accordingly. (This is subject to ‘Rule of 85’ protections. If you have Rule of 85 protections this protects some or all of your benefits from the normal early payment reduction).

Years early Pension male Pension female Lump sum (for membership to 31 March 2008)
1 5.6% 5.2% 2.9%
2 10.8% 10.1% 5.7%
3 15.5% 14.6% 8.5%
4 20.0% 18.8% 11.2%
5 24.0% 22.7% 13.7%
6 27.8% 26.4% 16.3%
7 31.4% 29.8% 18.7%
8 34.7% 33.0% 21.1%
9 37.7% 36.1% 23.4%
10 40.6% 38.9% 25.6%
11 44.2% 42.2% N/A%*
12 47.6% 45.5% N/A%*
13 50.9% 48.6% N/A%*

*The maximum reduction that can be applied to your automatic lump sum (for membership up to 31/03/2008) is 10 years. This is because these benefits have a protected normal pension age of 65 for almost all members, so the maximum reduction can only ever be 10 years, because you can only draw your benefits from age 55. Read more about taking your pension early on the LGPS members website.

Benefits at your Normal Pension Date

This section will be blank if you already reached your NPD by 31/03/2017. We assume you will continue in the section of the pension scheme (main or 50/50) you were in on 01/04/2017 until your NPD and so continue to build up pension to your NPD. Our calculations don’t allow for pay inflation or cost-of-living adjustments – we show your projected benefits to your NPD in today’s money. If your NPD in the CARE scheme is different to what it is in the Final Salary scheme we have also included an increase for the period between the dates, worked out using ‘actuarial factors’. The factors in force now are lower than they were in 2016. This means your projected benefits at NPD may be slightly lower than last year if you have a lot of final salary membership and a state pension age after 65. These factors are provided by the Government Actuaries Department (GAD) at a national level and are not locally decided.

You can claim your benefits from the age of 55. If you decide to claim your benefits before your NPD they will be reduced because you are claiming them early. You can leave your benefits unclaimed until just before your 75th birthday. If you decide to claim your benefits after your NPD they’ll be increased because you are claiming them late.

Please remember that the figures shown on your pension statement are an illustration only based on information given to us by your employer. You must ask for a full pension estimate before you decide to retire.

What’s paid if I die before I leave this job?

You can read more about the one-off death grant and who counts as an ‘eligible cohabiting partner’ at partner's pensions

We worked out your partner's pension using the marital status we hold on your pension record. If this is single, divorced, widowed or unknown, the partner's pension on your pension statement will show as £0.00 because no partner's pension is payable. If we didn’t have a marital status recorded for you we have assumed you are in an opposite-sex marriage.

If your marital status is wrong and you would like a revised pension statement based on your present marital status please phone us on 01274 434999 or email us at pensions@wypf.org.uk

If you die we will check your marital status before we work out what benefits are due, so there’s no need to worry if we don’t currently know your correct marital status.

Current value of partner pensions

Opposite sex marriage/same sex marriage/civil partner

Pre 01/04/ 2014 service = reckonable service × 1/160 × final pensionable pay

Post 31/03/2014 service = 30.625% of the member’s pension

The total partner pension is the above added together.

Co-habiting partner

Pre 01/04/2014 = reckonable service from 06/04/1988 to 31/03/2014 only × 1/160 × final pensionable pay

Post 31/03/2014 service = 30.625% of the member’s pension

The total partner pension is the above added together.

Death in service pension benefits

(this applies only to active members who die while still working and paying in to the pension scheme)

Death grant = 3 times your annual assumed pensionable pay

Partner pension as above, plus

Ill Health Enhancement from the day after the date of death to Normal Pension age or age 65, whichever is higher.

Ill Health Enhancement x 1/160 x annual assumed pensionable pay.

Note. If you marry or start living with a partner after you leave or retire, the amount they receive could be substantially less than shown here

Your pension tax relief limits

Read more about the lifetime allowance and annual allowance.

Other pension scheme membership

When you joined the pension scheme we asked you to complete a form to tell us about any other pension scheme membership you have had. If you haven’t already sent this form back to us, it’s very important that you do this as soon as possible. If you don’t, there could be a delay in assessing a benefit entitlement, until we obtain the required details.

  • Any decision you need to make about linking previous LGPS membership or transferring other pension rights to WYPF usually has to be made within the first year of joining
  • Other LGPS membership or membership of another public service pension scheme can affect your benefit entitlement from your current membership
  • All LGPS membership has to be taken into account when assessing the amount and payment of a death grant