How To Read Your Annual Benefit Statement

How To Read Your Annual Benefit Statement


In this video I’ll be going through your
annual benefit statement with you. You will receive a statement if you’re a
member of the local government pension scheme, or LGPS for short, before the
31st of March 2019. The LGPS is an occupational pension scheme so it is
linked to your pay in contributions for each job that you do. If you have more
than one job you’ll receive a statement for each one. You might find it helpful
if you have your own statement in front of you whilst watching this video. You
can find your statement under ‘annual benefit statement’ on your pension portal dashboard. I will be going through the main sections of that statement and some of the pension terms that I use. Each section has a number which you can
see on the right-hand side of the page. Section 1. Section 1 of your statement
will show your full name, date of birth and other personal details.
It also shows who your employer is and the job reference this statement relates
to. Section 1 shows if you are in the main scheme or the 50/50 scheme. Remember,
these details are as of the 31st of March 2019 so you may have had a few changes
since that day which will not show on this statement. If you need to amend any
of your personal details you should send the correct supporting documents using
the contact details at the bottom of your statement. Section 2. Section 2 shows you a summary of your benefits at the 31st of March 2019. That is the value of
your pension if you left the LGBS on the 31st of March 2019 and then took your
benefits at your normal pension age. Your normal pension age will be shown later
on in this statement. The figure on the left hand side of the section should
show you the total value of your pension. The figure on the right hand side will
show the value of your pension if you choose to give up some of the standard
pension to increase your lump sum payment. This is an option that will be
available at retirement and full details will be given to you at that time. Section 3. Section 3 shows you the total amount of pension that was shown in
section 2, broken down into your Final Salary Pension on the left and CARE
pension on the right. The LGPS is known as the Career Average Pension Scheme, or CARE scheme, and has been since the 1st of April 2014. Before the 1st of April 2014
the LGPS was known as a Final Salary Pension. The Final Salary Pension is
broken into two periods of membership. You will see membership to the 31st of
March 2008, and membership between the 1st of April 2008 and the 31st of March 2014.
If you were working part-time or term time only before the 1st of April 2014
your LGPS membership would have been reduced to allow for the fact that you
were not working full-time. This is because we
use your full-time equivalent pay in the calculation of your pension. That is the
pay you would have received if you worked in your post but on full-time
hours. If you had membership before the 1st of April 2008 then you’d also
receive an automatic lump sum. If you did not join the LGPS until the 1st of
April 2014 or afterwards you would not have any final salary benefits so these
figures will be 0. The care benefits are calculated in a different way to the
final salary benefits. From the 1st of April 2014, for every scheme year you’re a member of the LGPS, the pensionable pay you have
earned for that year is divided by 49 if you are in the main scheme or 98 if
you’re in the 50/50 scheme to give the amount of pension you have earned for
that year. On the 1st of April each year a cost-of-living adjustment is applied
to your benefits. On your statement the first line shows any CARE pension built
up until the 31st of March 2018. The second line shows the 2018
cost-of-living adjustment. The next line shows you the CARE benefits you’ve
accrued in the 2018-2019 scheme year. The total CARE closing balance gives you a
total of 3 lines above. Underneath the total care closing
balance is a breakdown of the 2018/19 build up line. This shows you the pension
you have accrued in the main scheme and the 50/50 scheme. If you’ve only been a
member of one of these sections then the figure will show a zero. If you have ever
purchased any additional pension in 2018 or 19, using the APC scheme for example,
then that figure will show in the Additional Pension Purchased line. If you
have transferred any benefits into the LGPS then these will show in the transfer line. If your transfer is in progress and was
not completed before the 31st of March 2019 then it will not show in your
annual benefit statement. If you have other pension benefits and are
interested in transferring them into the LGPS then please see the pension fund
website for further details. Please be aware that there is a time limit to
transferring benefits into the LGPS once you have joined the scheme. Also, if
you have previous local government pension benefits elsewhere and haven’t let us know then please see the pension fund website for details on how to do
this. Section 4. Section four shows you your
normal pension age in years and days. This is the date that you can take your
pension without any reductions being applied. The total projected yearly
pension at normal pensionable age shows you what your pension is likely to be if
you remained in the LGPS earning the same salary as you do now
until your retirement day. For some people their normal pension age will be
several years away so you have to appreciate this is only a rough estimate
and cannot take into account any change in your working circumstances or the
future increases that may be applied to your pension. If you were a member of the scheme prior to the 1st of April 2008 you would have accrued an automatic lump sum and the next line shows you the estimate of this to your normal pension
age. Don’t forget that at your retirement you will get the option to give up some
of your pension to make a larger lump sum as you was shown in Section 2. The
final line in this section shows the estimated survivors pension to your
normal pension age. This will be payable to your spouse, civil partner, or an
eligible cohabiting partner in the event of your death. Please note that if you’re
already over your normal pension age at the 31st of March 2019 the figure
in this section will show a zero. Section 5. Section 5 is showing you in the Yearly
Survivor’s Pension line how much would have been payable to your spouse, civil partner, or an eligible cohabiting partner if you had died on
the 31st of March 2019 as an active member of the LGPS. If you die in
service, a death grant of three times your assumed pensionable pay may be
payable to your nominated person or persons, or through a personal
representative if you have not nominated anyone. Please check that the nominations we hold for you are up to date by visiting the nominations section on the
MyPension site. Section 6. Section 6 shows you how much your pension benefits have used up of your lifetime allowance or LTA. Remember that this statement only shows your LGPS benefits so if you have any benefits
elsewhere or paid any additional voluntary contributions they would not
be included in the LTA figure. You can get further advice on the LTA on the
Pension Fund website or on the government’s website which is: gov.uk Section 7. Section 7 shows you the salary figures that we use to calculate your
annual benefit statement, which have been provided to us by your employer. If you
were in the LGPS before the first of April 2014, then you would have a final salary pensionable pay figure shown in the top line. This figure is the
pensionable pay you have earned in the last 365 days before the 31st of March 2019, so it may not be the same figure as the salary you are currently receiving now.
As I’ve mentioned before your final salary pension is calculated using your
full-time equivalent pay, so if you are working part-time then this figure will
show you what you would have earned in your job if you were working as a
full-time employee. The next two lines show you the CARE pensionable pay you
have earned in the 2018/19 scheme year, both in the main scheme and the 50/50
scheme. If you were a member of the main scheme only then the 50/50 scheme line
will show as zero, and vice-versa. If you think that any of these figures
are incorrect then you will need to contact your employer as we do not have
access to any of your pay details. If you have any questions that have not been
covered in this video then please refer to the guidance notes in the annual
benefit statement section of MyPensions online. Also, there is a frequently asked
questions list that may be helpful for you. If you cannot find the answer to
your question and need to contact us then please call us using the telephone
number shown on the bottom of your statement and we’ll always be happy to
help.

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