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Calculation of LGPS transfer rate suspended – expired

Calculation of LGPS transfer rate suspended

The calculation of all transfers into and out of the Local Government Pension Scheme (LGPS) has been suspended as a result of the change to the discount rate from 16 March 2016, as announced in the recent Budget. The Government sets the discount rate for all public service pension schemes.

The discount rate affects the amount of money that would be payable from the LGPS if you were to transfer your pension benefits to another pension scheme and also the pension benefits that would be purchased in the LGPS as a result of transferring previous pension rights into the scheme. In some cases linking periods of LGPS membership can be affected as transfer calculations are involved. The discount rate also affects the amount of your Cash Equivalent Value (CEV) if you have requested this for divorce purposes.

We are awaiting updated factors from the Government’s actuaries which will take into account the change to the discount rate when calculating transfers to and from the LGPS. Transfer calculations will resume as soon as the required factors and guidance have been received. We apologise for any inconvenience.