 |
SAMPLE OF ACTIVE MEMBER STATEMENT 2009
|
Page 2 - Present Value of LGPS Benefits |
| Membership |
|
Membership takes account of any transferred pension rights from previous pension schemes, ‘Breaks in Membership’ and any part-time membership you may have had. e.g. if you have been in the Scheme for 10 years working 18 hours out of a 36 hour week i.e. ‘half-time’, your total membership would be shown as 5 years.
|
| Annual Pension (A) |
|
Pension (A) is calculated based on 1/80th of your Scheme Membership up to and including
31 March 2008 multiplied by your final pay.
|
| Tax-free Lump Sum (Automatic) |
|
The Tax-free Lump Sum is an additional, ‘one-off’, tax-free amount, paid at retirement, normally based on three times Annual Pension (A).
|
| Annual Pension (B) |
|
Annual Pension (B) is calculated based on 1/60th of your Scheme Membership built up from 1 April 2008 to 31 March 2009 multiplied by your final pay.
|
| Final Pay |
|
Final Pay is the figure used, together with membership, to calculate your LGPS benefits. If you work less than full-time hours, or have worked less than 365 days in the period 1 April 2008 to 31 March 2009, the amount has been adjusted to represent either full-time equivalent earnings and/or a complete year.
|
| Total Membership |
|
Total Membership – is the sum of the length of time you have been a member of the Scheme, including any added years purchased as at 31 March 2009, adjusted accordingly where part-time hours are/have been worked, plus any transfers received from previous pension schemes.
|
| Total Annual Pension (A+B) |
|
Total Annual Pension is determined by adding the pension built up before 31 March 2008 (Pension ‘A’) to the pension built up from 1 April 2008 (Pension ‘B’).
|
| Maximum tax-free Lump Sum |
|
Maximum Tax-free Lump Sum - By giving up some of your pension, at retirement, you can increase the amount of tax-free cash payable to up to 25% of the total value of your pension benefits, however this must take into account any other tax-free cash you receive. The figure shown represents 25% of the total value of your pension benefits.
|
| Minimum Total Annual Pension |
|
Minimum Total Annual Pension - The figure represents the pension payable when 25% of the total value of your pension benefits is taken as tax-free cash.
|
| Survivor's Annual Pension |
|
It is assumed that all members have an eligible ‘survivor’ who, on the member’s death, would be entitled to receive a Survivor’s pension for life. The Survivor’s pension is based on 1/160th of pensionable pay for each year of Total Membership, plus the membership you would have had up to age 65. However for Registered Civil and Nominated Cohabiting Partners, the Survivor’s pension is based only on membership from 6 April 1988 plus the membership they would have had up to age 65.
|
| Death In Service Grant |
|
The Death Grant is normally three times your Actual Pay and although the Fund will decide to whom it is paid, if you have submitted a completed Nomination Form, this will be taken into account.
|
