Deferred - Need to know 

Pension credit benefits

A court can award you a pension share of your former partner’s pension benefits as part of the settlement of a divorce or dissolution of a civil partnership. This explains the pension rights you get in the Local Government Pension Scheme as a result.

Your pension credit

The pension rights of your former spouse or partner are valued (a ‘cash equivalent’ value, or CEV) and you are allocated a proportion of this based on the split ordered by the court. For example, the CEV is £100,000 and based on a 50/50 split, you will be awarded £50,000. This £50,000.00 provides you with pension credit benefitsmade up of

  • an annual pension, and (as long as your former spouse or partner is not yet getting their pension from us)

or

  • a one off lump sum at state pension age if the pension is very small.

Your pension credit is inflation proofed in line with the Consumer Prices Index both before and after payment.

When will I get the money?

The payment date for pension credit benefits is normal pension age. This pension is payable for life.

It is possible to receive payment of these benefits earlier than NPA but if you take them before normal pension age they’ll be reduced because you’re getting them early.

This will normally be from age 60 but for certain members it can be age 55. Please refer to your original documentation to see which applies to you.

Death benefits

If you die, the people you leave behind could be entitled to a death grant. You can tell us who you would like us to pay your death grant to on this form. The amount depends on whether you have started to get your pension or not, and for how long.

  • If you’re not yet getting your pension we pay a death grant equal to three times your annual pension, plus inflation proofing.
  • If you are already getting your pension when you die and you have been getting it for less than five years, we pay a death grant equal to five years’ pension less all the pension we’ve already paid you.

Please note: we will respect your wishes as far as we can, but we have the final decision about who your death grant is paid to. If you have more than one pension with WYPF, your nomination will apply to all your WYPF pensions unless you tell us otherwise.

Survivor benefits

The pension credit is your personal benefit with no survivor benefits attached, so your husband, wife or partner won’t be entitled to a pension if you marry or register a civil partnership in the future.

Children’s pensions remain linked to your former spouse or partner’s pension and are unaffected by the pension sharing.

Can I add pension credit benefits to my other LGPS membership?

No, you can’t add your pension credit benefits to any current or future LGPS membership you earn in your own right.

Can I transfer my pension credit to another pension scheme?

Yes, it’s possible to transfer your pension credit to another pension scheme

Please click here for more information on transferring out

Pension credit statement

Every year (usually in May) we’ll send you a statement that shows how much your pension benefits are worth.