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Deferred Pensions



Looking for your online account? You will find it all here at:
www.Leicestershirepensionfund.org

If you have a query regarding the new online service please call the following helpline:
0116 3057886
Or email us at: Pensionsonline@leics.gov.uk



What is a deferred pension?
Does my deferred pension go up?
I have a deferred pension with the Leicestershire scheme, can I take it early?
When will the Pension Section contact me?
How do I let you know I have changed my address?
Can I transfer this pension to another local government fund?
Can I transfer this pension into another non local government scheme?
What will happen if I die before receiving payment of my deferred benefits?


What is a deferred pension?
Having a deferred pension means that you were once a member of the pension scheme, but you left before retirement age.  You have therefore retained your pension with us. Sometimes it is called a ‘preserved benefit’ or a ‘frozen pension’. It is all the same.
You will be contacted at retirement age and offered the benefits.
You will receive a statement each year, usually in September, which provides you with the current value and the date that the benefits are due to become payable.  The statements are posted onto your Online pensions account.  Every deferred member can register for access to their online account at the following website: www.Leicestershirepensionfund.org
If you have a query regarding the new online service please call the following helpline: 0116 3057886
Or email us at: Pensionsonline@leics.gov.uk


Does my deferred pension go up?
The deferred pension is inflation proofed, and until 2010 increased in line with the Retail Prices Index (RPI).  From 2011, the rate of index changed to the Consumer Prices Index (CPI).
In April 2013, the overall pensions increase was 2.2%.
The 2014 pensions increase will be 2.7%.


I have a deferred pension with the Leicestershire scheme, can I take it early?
Not always.
If you left the LGPS before 1st April 2014, then you cannot draw your pension before age 60, unless you are over 55 and have achieved the Consent of your former employer (in line with their own internal policy). If you are interested in finding out if you can draw on your benefits before age 60 please write to your former employer stating the reasons for your claim and requesting further information.
If you left the LGPS after 1st April 2014, then you are able to access your pension benefits from age 55 without the consent of your employer.  However, the benefits are likely to be significantly reduced in order for you to start drawing them earlier.  If you are interested in finding out the value of your benefits on a given date please contact the Pension Section for further information.
However, you can still apply for release of your deferred benefits on health grounds at any age, which will be judged on whether you are permanently unfit to carry out gainful employment, or in some cases, your former role.
In both instances, you will need to apply to your former employer for early payment, stating the reasons.


When will the Pension Section contact me?
Your annual pension statement will be available online for you to view, around the end of September.
We will also contact you approximately 2 months before your earliest claim date (this may be inbetween your 55th and your 60th birthday) to tell you about your pension entitlement and how to claim it.


How do I let you know I have changed my address?
It is important that you let us know if you change address so we can keep in touch with you while you are a deferred member and to arrange for the payment of your pension benefits when they become due.  You can do this by e-mailing us at: pensions@leics.gov.uk


Can I transfer this pension to another local government fund?
If you have deferred benefits from a previous LGPS employment, and any of these rights relate to membership that you built up in the scheme before 31st March 2014, then you will be provided with information by your new scheme to help you decide whether to move those benefits across from the Leicestershire fund, or to keep them here.  There are a number of factors that you will need to consider, and you will be provided with full details to enable you to make this decision.
If you have deferred benefits from a previous LGPS employment and all of those benefits relate to a period of employment that took place after 1st April 2014, then those benefits will automatically be joined together with your new LGPS pension.  This is because all post 2014 rights are equal across the different funds, and so the Regulations state that a transfer should automatically take place.  Your pension rights are exactly the same whichever fund they are held in, and there is no advantage or disadvantage to your pension being moved.


Can I transfer this pension into another non local government scheme?
Normally yes, although you will need to check with that scheme or fund that they are willing to accept the transfer.  If they will, then they will be able to inform you of the procedures.  This will involve a request being made for a 'cash equivalent transfer value (CETV)' to be calculated by the Pension Section, which is supplied to your new provider in order that they can inform you of the equivalent rights in their scheme.  You will then be able to make an informed decision.


What will happen if I die before receiving payment of my deferred benefits?
If you die with deferred benefits in the LGPS, the following benefits are payable:
A lump sum death grant this a multiple of the current value of your deferred pension at the date of leaving the LGPS.
If you left the LGPS before 31st March 2008, the amount payable would be 3 X the pension, and if you have membership after 1st April 2008, the amount payable would be 5 X the value of the pension.
If you have not nominated a beneficiary, please do so.  You can download here a copy of our Death Grant Expression of Wish form (PDF document 858KB)
Important note: If you have more than one LGPS pension, that is to say if you a current contributing member as well with separate benefits either within the Leicestershire Scheme or under another Local Authority in the event of your death, only one Death Grant will be paid.  This will be the one that is the higher of the payments, once they have been calculated.
There is also an ongoing pension for your husband, wife, civil partner, or cohabiting partner*.
*What defines a cohabiting Partner?  A scheme member can only provide benefits for a co-habiting partner provided they paid into the scheme on or after 1.4.2008.
Cohabiting partner means a person whom Leicestershire County Council Pension Fund is satisfied fulfils the following conditions:
The person (P) has fulfilled the conditions below for a continuous period of at least 2 years on the date the member (M) died
The conditions are:
M is able to marry, or form a civil partnership with P
M and P are living together as if they were husband and wife or as if they were civil partners
Neither M nor P is living with a third person as if they were husband and wife or as if they were civil partners, and
Either P is financially dependent on M, or M and P are financially interdependent.
Pensions can also be paid to eligible children.  Eligible children can include your own children, adopted children and certain other children who depend on you financially.  They must normally be under 18, but can be as old as 23 if they carry on in full time education or in training for a trade, profession or vocation, or can even cover some adult children who cannot work, because of a disability which arose while they were a child.

Page Last Updated: 11 April 2014