Annual Benefit Statement

Note: Your annual benefit statement is for illustration purposes only and does not commit to payment on the basis of the information provided. You should not use your statement to make any retirement decisions. If you are retiring, you can request an estimate when you complete your retirement declaration form.

 

Statements for members with  deferred pensions

Annual benefit statements (2024) for members with deferred pensions are now available to view through your Member Portal account. They will provide details of your pension benefits at 10 April 2024. This date is used to include this year's pension increase.

Statements for members actively contributing to their pension 

Annual benefit statement (2024) for members who are actively contributing to their pensions will be available by 31 August 2024.

All members

If you have previously opted out of receiving your information online, a printed statement will be sent to the home address that we hold for you. 

To view your latest statement and any previous statements (if applicable) visit our Member Portal. 

You can register or sign in at: Member Portal

You can also use our Portal to:

  • Update your address if you have moved, 
  • Download your annual statement as a PDF file - which you can then print from your device, if preferred, 
  • Send us a secure message.

For a short slideshow explaining your statement, see:

Your pension - your future. Your Annual Benefit Statement explained

No Statement available?

In some cases, there will be no statement available. This may be because:

  • You started or left service after 31/03/2024,
  • We have an outstanding query with your employer following the 2024 end of year return provided by them so we do not have enough information to produce a statement at present,
  • We are processing your pension benefits and you will receive a letter shortly,
  • We are processing your retirement benefits,
  • You have a deferred pension and are over your normal pension age (NPA). 

If you have a query with your annual benefit statement, please refer to our Annual Benefit Statement FAQ in the first instance. If your question cannot be answered this way, you should email: [email protected]

Opting out of online statements

If you need your statement in an alternative format, please contact us at [email protected]

To opt out of electronic communications, please write to us at:

Pension Services
Hampshire County Council
The Castle
Winchester
Hampshire
SO23 8UB

Please include your National Insurance number in any communications so that we can identify your record. 

Additional Notes for Active Members

These notes provide more explanation of the information contained in your 2024 Annual benefit statement.

This year's Annual Benefit Statement provides an estimate of your pension benefits built up to 31 March 2024. Any projection of your pension entitlement is also based on the assumption that your current membership will continue unchanged until your NPA.

News

The McCloud remedy

When public service pension schemes changed from final salary schemes to career average schemes in 2014 and 2015, older members were protected from the changes.

In 2018, the Courts found that younger members had been discriminated against because the protection did not apply to them. Changes made to the LGPS from 1 October 2023 remove the discrimination found in the court case. These changes are called the McCloud remedy.

Not all LGPS members are affected by the changes. You can find more information on the national LGPS website, including a short video. Please visit www.lgpsmember.org/mccloud-remedy/

As a member of the LGPS, you do not need to take any action to claim your protections under the McCloud remedy. If you qualify, the pension fund will automatically apply the protection when you take your LGPS pension.

If you are contacted by a third party organisation selling a service to help you claim additional pension, you should not engage with them.

 

If you leave your job before you want to claim your benefits you will be awarded a deferred pension provided you satisfy the vesting period.

You satisfy the vesting period if you:

  • Have been a member of the LGPS in England or Wales for two years or
  • Have transferred a pension into the LGPS from another occupational scheme or from a European pension's institution and the length of service in that scheme Plus your LGPS membership is more than two years or
  • Have transferred pension benefits into the LGPS from a pension scheme which does not allow a refund of contributions or
  • Have transferred pension benefits from the LGPS to a qualified recognised overseas pension scheme
  • Have a deferred pension or are in receipt of a pension from the LGPS, other than a survivor's pension or a pension credit member's pension
  • Paid National Insurance contributions as a member of the LGPS and you stop paying into the LGPS in the tax year you reach state pension age or
  • Stop paying into the LGPS at age 75 or
  • Die in service.

If you have not met the vesting period, you can choose:

  • To take a refund of the pension contributions you have paid (the employer contribution is not refunded) or
  • To transfer the value of your LGPS pension to another pension arrangement (if the regulations allow) 
  •  

Normal Pension Age (NPA) is the date you can take your benefits in full and for most people this will be your State Pension Age (but with a minimum of age 65).

You must take your pension by age 75. For more information on when you can take your benefits, see our webpages. 

If your State Pension Age changes in future, your NPA in the LGPS will also change. 

You can only take this pension when you leave your job or if your employer grants flexible retirement. However, you must take this pension by age 75 if you continue to work. 

You can choose to take your pension from age 55 but it will be reduced if you take it before your Normal Pension Age (NPA). If you take your pension after your NPA, increases will be applied from this date.

At any time, the Government may change the factors and methodology used to calculate the reductions and increases which may result in a corresponding change to the pension you are paid at retirement.

The Government sets the normal minimum age at which you can access your pension savings. This is currently age 55 - however it is rising to age 57 from 6 April 2028.

If you paid into the LGPS before 1 April 2014, you may have a different Normal Pension Age (NPA) for benefits built up before this date. 

If you have a different NPA for your pre April 2014 and post April 2014 benefits, then some of your benefits may be paid in full and some may be increased or decreased depending on when you decide to take your pension. However, when you take your benefits, you take them all at the same time (unless your employer allows you to take flexible retirement).

At retirement most members are able to increase their lump sum by giving up some of their annual pension. For each £1 of pension that you give up, you get an extra £12 of lump sum.

Your statement shows you:

  • Your standard pension benefits, with no pension exchanged for a lump sum and
  • Your pension benefits with the maximum amount of pension exchanged for a lump sum.

You can also choose a lump sum value between the two lump sums shown in your statement.

If you joined the LGPS after 31 March 2008 you will see a £0 lump sum in your standard pension benefits. However, you can still give up pension to provide a lump sum.

If you have an AVC you will need to request an estimate from us if you wish to convert pension to a lump sum, as figures in this statement will not be accurate.

HM Revenue and Customs set the maximum limit on the pension that you can exchange for a lump sum.

Your pensionable pay was provided by your employer. If you do not agree with the amount shown on your statement, please contact your employer. 

Any service you have before 1 April 2014 is used to calculate pension. You can view your service history on the Member Portal. From 1 April 2014, your pension is calculated on your pensionable pay only, not on your service.

Additional Pension Contributions (APCs) paid in the current scheme year will be shown with your CARE pension for the current year. If you have paid APCs in previous years these are included in the post 2014 pension amounts. 

If you have a spouse or civil partner, they automatically qualify to receive a survivor's pension if you were to die. If you have a cohabiting partner and meet certain conditions, your partner may be eligible for a pension even though you are not married or in a civil partnership.

The Survivors pension is a scheme benefit that is paid to surviving partners and will not reduce or affect your pension even if you do not have a partner. You cannot nominate anyone else to receive your partner's pension.

An estimated surviving partner's pension is shown if our records indicate you are in a partnership. This figure is only for illustration purposes and the amount may differ from the one shown depending on your circumstances and on the regulations that apply when a pension becomes payable. For example, if you are currently married but subsequently re-marry after you leave, your new spouse may not be entitled to as much pension as your original spouse was.

A death grant lump sum will be payable if you were to die while contributing to the LGPS. The distribution of this is made at the absolute discretion of the fund; however, you can express a wish for a person(s) or organisation(s) to receive this. It can be paid directly to a beneficiary and therefore would not be part of your estate or subject to inheritance tax.

You can view and update an existing nomination or provide a new nomination on the Member Portal. Alternatively, you can complete a death grant expression of wish form available from our website.

Please note: If you have a deferred pension and/ or a pension in payment from a previous period of membership of the scheme, the death grant lump sum will be the higher of:

  • A death grant lump sum of three times your assumed pensionable pay for your active membership(s),
  • The death grant arising from the previous deferred pension or,
  • The death grant arising from a pension in payment.

The Lifetime Allowance (LTA) was the amount you could take from all your pension savings without a tax charge. The Finance Act 2024 abolished the LTA in full with effect from 6 April 2024. The LTA has been replaced by two new tax allowances. 

Lump Sum Allowance (LSA) - The LSA is a limit on a total amount of tax-free cash an individual can take from all their pension savings. It is set at £268,275 and there is no provision in the legislation for this limit to rise.
Lump Sum and Death Benefit Allowance (LSDBA) - The LSDBA is a limit on the amount of tax-free cash that can be taken by an individual and the lump sum death benefits that can be paid in respect of an individual when they die. It is set at £1,073,100 and there is no provision in the Legislation for this limit to rise.

Transitional tax-free amount certificate (TTFAC) - If you took payment of any pension or lump sum before 6 April 2024, these payments will have used up part of your lump sum allowances. Under HMRC rules, we must assume that you took the maximum lump sum allowed. 

If you took less than the maximum lump sum allowed, you can get a TTFAC. The certificate sets out the total lump sums you have received. We will then use these amounts to calculate how much of the lump sum allowances you have used, rather than assuming you have taken the maximum amount. For most members, a TTFAC will have no effect on the lump sum they can take from the LGPS. The allowances will generally only affect members who have built up very large pensions. 

If you hold a TTFAC, you must send it with your retirement declaration form. If you have sent us a TTFAC, you do not need to tell us about pensions or lump sums taken before 6 April 2024. 

If you are thinking about applying for a TTFAC, you may wish to seek specialist independent financial advice. Some members could be worse off if they apply than they would be without a certificate.

The LGPS is a defined benefit pension scheme. The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) have stated that they "believe that it will be in most people's best interests to keep their defined benefit pension. If you transfer out of a defined benefit pension, you cannot reverse it. Make sure that you understand the risks to help you make an informed decision".

Pension Fraud is a real concern and on the increase. If you are thinking of transferring your deferred pension out of the LGPS you may be at risk from scammers. Scam tactics include: 

  • Websites impersonating well known brands
  • Promise to high/guaranteed returns,
  • Pressure to act quickly,
  • Free pension reviews, 
  • Access to your pension before age 55,
  • Contact out of the blue. 

Many scammers are using social media and other online channels to offer people "too good to be true" incentives such as free pension reviews, early access to their money, or time limited offers. Lured by these attractive offers, people are coerced into transferring their savings into a scam scheme designed to fleece them of their savings.

Please read the guidance document produced by The Pensions Regulator

To protect yourself from scams the Pensions Regulator suggests the following:

  • Reject unexpected offers and any contact out of the blue,
  • Check the Financial Service Register to confirm if the person or firm offering you advice is authorised - avoid unauthorised advisers,
  • Don't be rushed or pressured into transferring your pension,
  • Get impartial financial advice (you must do this is you want to transfer more than £30,000 but it is always recommended),
  • Contact Money Helper for free independent and impartial information and guidance.

Beware:

  • Any offer of a free pension review is likely to be a scam.
  • Ask to see the HM Revenue and Customs approval of your new pension scheme - if the scheme is recently registered, it may be a scam.

For further detail and information please visit our website:

HM Revenue and Customs sets an annual allowance, which is the amount by which your benefits can increase in a year without being subject to tax. The standard annual allowance is currently £60,000. If you have exceeded the standard annual allowance limit in the year you will receive a Pension Savings Statement by 6 October 2024.

A tapered annual allowance may apply for people with adjusted income of £150,000 and over. If you think this applies to you, please contact us.

Please see the annual allowance factsheet on our website for more information.

Additional Notes for Deferred Members

These notes provide more explanation of the information contained in your 2024 annual benefit statement.

This year's Annual Benefit Statement provides an estimate of your pension benefits built up to 31 March 2024. Any projections on your pension entitlement are also based on the assumption that your current membership will continue until your NPA.

The McCloud remedy

When public service pension schemes changed from final salary schemes to career average schemes in 2014 and 2015, older members were protected from the changes.

In 2018, the Courts found that younger members had been discriminated against because the protection did not apply to them. Changes made to the LGPS from 1 October 2023 removes the discrimination found in the court case. These changes are called the McCloud remedy. 

Not all LGPS members are affected by the changes. You can find more information on the national LGPS website, including a short video. Please visit www.lgpsmember.org/mccloud-remedy/

If you are affected, you do not need to write into the pension fund or make any decisions. If you are contacted by a third party organisation selling a service to help you claim additional pension, you should not engage with them. 

As a member of the LGPS, you do not need to take any action to claim your protections under the McCloud remedy. If you qualify, the pension fund will automatically apply the protection when you take your LGPS pension./strong>

Your deferred pension is reviewed each year. HM Treasury sets the increase in public service pensions, based on the rate of the Consumer Price Index (CPI) in the previous September. It is then approved by parliament. This year, the increase is effective from 08 April 2024 and is included in the figures in your statement. If you left the scheme after 24 April 2022, you may receive only part of the full year increase this year. 

Your pension is due to paid in full by your Normal Pension Age (NPA). You can find your NPA in your annual benefit statement labelled "payable from".

Some members may have protections which means they can claim their pension before their NPA without reductions. In this case, note that late payment increases will only apply from your NPA. 

Please be aware that the government is gradually increasing the early retirement age, and this will reach 57 by 2028. 

You must take your pension by age 75. For more information on when you can take your benefits, see our webpages.

Any benefits built up after 1 April 2014 will be payable in full at your State Pension Age (SPA). Please be aware that the government is gradually increasing the SPA and this will reach 67 by 2028. As it is continually under review it may change again in the future. Any change in SPA can affect your NPA.

If you take your benefits before your NPA, they may be reduced as they will be in payment for longer. If you take your pension after your NPA, late payment increases will be applied. 

Some parts of your benefits may have a different NPA depending on the scheme rules that applied at the time the benefits were built up. However, you must take all of your benefits on the same date. This means that parts of your pension may be:

  • Increased for late payment or,
  • Decreased for early payment depending on when you choose to take them.

The Government may change the factors and methodology used to calculate the reductions and increases and are currently reviewing the late retirement factors. This may result in a corresponding change to the pension you are paid at retirement. 

The benefits shown on your statement include any late payment increases which apply to your benefits if they were paid on the date shown. If you are past your NPA, the figures on this statement will be inaccurate. 

Providing that you are no longer in the LGPS employment relating to this pension, you can claim your benefits before NPA, but this depends on when you stopped paying into the LGPS. If you:

  • Left the LGPS before 1 April 1998: You can choose to receive your pension from age 55. If you do not take your pension early, then you must take it at your normal retirement date (NRD).
    Your NRD is the earlier of:

1) The date you would have achieved 25 years membership if you had stayed in the scheme, provided that date is on or after your 60th birthday.

2) Age 65 - If you have passed your NRD - the date shown under 'your Pension' - your benefits must be paid at the value at your NRD and your statement will be incorrect. For more information, please contact us.

If you have passed your NPA - shown under section 1, Your Pension - your benefits must be paid at the value at your NPA and statements produced past this date will be incorrect. For more information, please contact us.

  • Left the LGPS after 31 March 1998: You can choose to receive your pension from age 55 (or in a few cases from age 50 if your former employer's policy allows).
  • Left the LGPS after 31 March 2014: You can choose to receive your pension from age 55.

You can run an online estimate using our Member Portal. This will show you the effect of possible reductions for early payment and/or increases for late payment. 

The early payment reductions are shown below. If you claim your benefit between whole years, then the reduction will be between the figures shown. 

 Years early  Reductions
Pension Lump Sum
 1 5.1% 2.3%
 2 9.9% 4.6% 
 3 14.3% 6.9%
 4 18.4% 9.1%
 5 22.2% 11.2%
 6 25.7%  13.3%
 7 29% 15.3%
 8 32.1% 17.3%
 9 35% 19.2%
 10 37.7% 21.1%
 11 41.6% N/A
 12 44% N/A
 13 46.3% N/A

If you left after 1 April 1998, you can choose to defer your pension past your NPA. However, please note that it will not be backdated when it comes into payment. 

Ill health: You may apply to receive your pension on the grounds of ill health at any age, please contact your former employer in the first instance who will guide you through their deferred ill health process. 

See our website for information about how to claim your pension. 

Most members are able to increase their lump sum by giving up some of their annual pension. For each £1 of pension that you give up, you get an extra £12 of lump sum. 

Your statement shows:

  • Your standard pension benefits, with no pension exchanged for lump sum and
  • Your pension benefits with the maximum amount of pension exchanged for lump sum.

You can also choose a lump sum value between the two lump sums shown in your statement. 

If you joined the LGPS after 31 March 2008 you will see a £0 lump sum in your standard pension benefits. However, you can still give up pension to receive a lump sum. 

HM Revenue and Customs set a maximum limit on the pension that you can exchange for lump sum. 

The Lifetime Allowance (LTA) was the amount you could take from all your pension savings without a tax charge. The Finance Act 2024 abolished the LTA in full with effect from 6 April 2024. The LTA has been replaced by two new tax allowances. 

Lump Sum Allowance (LSA) - The LSA is a limit on a total amount of tax-free cash an individual can take from all their pension savings. It is set at £268,275 and there is no provision in the legislation for this limit to rise. 
Lump Sum and Death Benefit Allowance (LSDBA) - The LSDBA is a limit on the amount of tax-free cash that can be taken by an individual and the lump sum death benefits that can be paid in respect of an individual when they die. It is set at £1,073,100 and there is no provision in the Legislation for this limit to rise.

Transitional tax-free amount certificate (TTFAC) - If you took payment of any pension or lump sum before 6 April 2024, these payments will have used up part of your lump sum allowances. Under HMRC rules, we must assume that you took the maximum lump sum allowed. 

If you took less than the maximum lump sum allowed, you can get a TTFAC. The certificate sets out the total lump sums you have received. We will then use these amounts to calculate how much of the lump sum allowances you have used, rather than assuming you have taken the maximum amount. For most members, a TTFAC will have no effect on the lump sum they can take from the LGPS. The allowances will generally only affect members who have built up very large pensions. 

If you hold a TTFAC, you must send it with your retirement declaration form. If you have sent us a TTFAC, you do not need to tell us about pensions or lump sums taken before 6 April 2024. 

If you are thinking about applying for a TTFAC, you may wish to seek specialist independent financial advice. Some members could be worse off if they apply than they would be without a certificate.

The LGPS is a defined benefit pension scheme. The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) have stated that they; "believe that it will be in most people's best interests to keep their defined benefit pension. If you transfer out of a defined benefit pension, you cannot reverse it. Make sure you understand the risks to help you make an informed decision".

Pension Fraud is a real concern and on the increase. If you are thinking of transferring your deferred pension out of the LGPS you may be at risk from scammers. Scam tactics include:

  • Websites impersonating well-known brands,
  • Promise of high investment returns,
  • Pressure to act quickly,
  • Free pension reviews,
  • Access to your pension before age 55,
  • Contact out of the blue.

Many scammers are using social media and other online channels to offer people "too good to be true" incentives such as free pension reviews, early access to their money, or time limited offers. Lured by these attractive offers, people are coerced into transferring their savings into a scam scheme designed to fleece them of their savings.

Please read the guidance document produced by The Pensions Regulator.

To protect yourself from scams the Pensions Regulator suggests the following:

  • Reject unexpected offers and any contact out of the blue,
  • Check the Financial Services Register to confirm if the person offering you advice is authorised - avoid unauthorised advisers,
  • Do not be rushed or pressured into transferring your pension,
  • Get impartial financial advise (you must do this if you want to transfer more than £30,000 but it is always recommended),
  • Contact Money Helper for free independent and impartial information and guidance.

Beware: 

  • Any offer of a free pension review is likely to be a scam. 
  • Ask to see the HM Revenue and Customs approval of your new pension scheme - if the scheme is recently registered, it may be a scam.

For further detail and information please visit our Pension Scams page. 

If you re-join the LGPS with Hampshire or another fund in England or Wales, you must make sure both administering authorities are aware you have other LGPS pension benefits.

 You will normally have a year to make a decision about whether or not to combine your deferred pension with your active one. These options are explained in our Starter Information booklet. To notify us of your decision you will need to complete our Membership Option Form on the Member Portal. If you require this in an alternative format, please see: Forms for members of the LGPS | Hampshire County Council (hants.gov.uk)

If you opted out of the LGPS on or after 11 April 2015 but did not leave your job, you will not be able to combine your deferred pension with your active one if you later opt back into the LGPS in the same employment. 

Please note AVC statements are sent separately - they are not included in your annual benefit statement. 

If you joined the LGPS before 1 April 1980 and left the scheme before 31 March 1998, your pension will be reduced at state pension age due to National Insurance modification. This amount was shown in your letter when you left the LGPS.

Additional Notes for Councillors

These notes provide an explanation of the information contained in your 2024 benefit statement.

Deferred benefits become payable at age 65 (unless you opt to defer payment beyond that age), but may be paid at any age in the event of ill health, without reduction. 

You can also elect to receive your benefits early:

  • On or after age 50 (but before age 55) with your council's consent,
  • At age 55 or later, without your council's consent.*

*Please be aware that the government is gradually increasing the early retirement age, and this will reach 57 by 2028.

Your pension (unless being paid on the grounds of permanent ill health) will be reduced if you choose to receive it before age 65. The reduction will depend on how early it is paid:

 Years early  Reductions
 Pension  Lump sum
 1 5.1% 2.3%
 2 9.9%  4.6%
 3 14.3% 6.9%
 4 18.4% 9.1%
 5 22.2% 11.2% 
6 25.7% 13.3%
7 29%  15.3%
8 32.1% 17.3%
9 35%  19.2%
10 37.7% 21.1%

There is information on our website about how to claim your pension. 

If you take your pension after age 65, increases will be applied. 

At any time, the Government may change the factors and methodology used to calculate the reductions and increases. This may result in a corresponding change to the pension you are paid at retirement. 

 

The LGPS is a defined benefit pension scheme. The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) have stated that they "believe that it will be in most peoples best interests to keep their defined benefit pension. If you transfer out of a defined benefit pension, you cannot reverse it. Make sure that you understand the risks to help you make an informed decision".

Pension fraud is a real concern and on the increase. If you are thinking of transferring your deferred pension out of the LGPS you may be at risk from scammers. Scam tactics include:

  • Websites impersonating well known brands,
  • Promise of high investment returns,
  • Pressure to act quickly,
  • Free pension reviews, 
  • Access to your pension before age 55,
  • Contact out of the blue.

Many scammers are using social media and other online channels to offer people "too good to be true" incentives such as free pension reviews, early access to their money, or time limited offers. Lured by these attractive offers, people are coerced into transferring their savings into a scam scheme designed to fleece them of their savings.

Please read the guidance document produced by The Pensions Regulator.

To protect yourself from scams the Pensions Regulator suggests the following:

  • Reject unexpected offers and any contact out of the blue,
  • Check the Financial Services Register to confirm if the person offering you advice is authorised - avoid unauthorised advisers,
  • Don't be rushed or pressured into transferring your pension, 
  • Get impartial advice (you must do this if you want to transfer more than £30,000 but it is always recommended),
  • Contact Money Helper for free independent impartial information and guidance.

Beware:

  • Any offer of a free pension review if likely to be a scam.
  • Ask to see the HM Revenue and Customs approval of your new pension scheme - if the scheme if recently registered, it may be a scam.

For further detail and information please visit our Pension Scams Page.

Please note AVC Statements are sent separately - they are not included in your annual benefit statement.