BENEFITS BEFORE NORMAL RETIREMENT FOR PRESERVED PENSIONERS

 

Your preserved (or ‘deferred’) benefits, have been calculated as per normal retirement benefits and you should have been provided with a statement showing you what they are shortly after you left the employing authority with whom you were contributing to NILGOSC.

Preserved benefits are payable at age 65 or earlier,if you joined the Scheme before 1st February 2003,  at the date between age 60 and 65 when 25 years membership would have been completed had you remained in the Scheme.  The requirements of the Social Security Acts prevent a future pension entitlement being “cashed in” for a lump sum payment before retirement.  On your preserved benefits statement it will show the date from which your benefits are payable.

 

EARLY PAYMENT

The circumstances in which your preserved pension benefits may be brought into payment early are:-

Reduced Benefits

You can apply for early payment of your preserved benefits at any time after your 60th birthday, provided that you have retired from all Local Government employment. If you have less than 25 years service (or you did not have the potential to do 25 years service when you wish to apply for your benefits), your benefits will be reduced depending on the length of time between your normal payment date and your actual payment date.

The reduction percentages are shown below:

NUMBER OF YEARS

PERCENTAGE REDUCTION

RETIREMENT PENSION

RETIREMENT GRANT

MALE

FEMALE

BOTH SEXES

1

2

3

4

5

8

15

22

28

33

7

13

18

23

27

2

5

7

9

11
 

Permanent Ill-health

Preserved benefits may be brought into early payment on the grounds of permanent ill health if the illness from which you suffer would have resulted in your retirement on medical grounds had you still been in the employment to which the preserved benefits apply.  Payment of preserved benefits are subject to the Committee’s Occupational Health Consultant certifying that the illness from which you suffer is permanent, or at least, to your 65th birthday.

To apply for your preserved benefits to be paid early on the grounds of permanent ill health, you must submit a written application to the Committee, together with a medical report from your Doctor stating the nature and permanency of the illness.  Any costs incurred in obtaining the report must be borne by you.

This medical report and your application will be forwarded to the Committee’s Occupational Health Consultant and a medical appointment may be arranged.  If after the medical appointment, the Committee Doctor certifies your illness permanent, your preserved benefits will then be brought into payment immediately.

In cases of severe ill health, where the Committee’s Doctor certifies that the preserved member’s life expectancy is less than one year, the option is provided where preserved benefits may be commuted and paid as a lump sum or the normal benefits can be paid out.

From age 50 or over

If your former employer consents, you may elect to receive early payment of your preserved benefits at any time after attaining age 50.  If your benefits are subject to reduction, your former employer may on compassionate grounds advise the Committee to waive the reduction.  You must make application through your former employer who will have a policy discretion on this matter.

 

DEATH BENEFITS PAYABLE

In the event of the death of a member with preserved benefits before they become due for payment, a lump sum death grant is payable to either your spouse, civil partner, next of kin, personal representative or such other beneficiaries as you have nominated to receive it.  The advantage of nominating a beneficiary or beneficiaries for the death grant is that it can be paid more quickly, without waiting several months for your estate to be settled, and because it is paid at the discretion of the Committee and does not form part of your estate, it will not be subject to inheritance tax.  To nominate a beneficiary or beneficiaries for the death grant please request and complete an LGS20 – Nomination of Beneficiary Form by contacting us.  It is therefore very important to notify us of any changes in your circumstances (ie address or marital status) by completing a new Nomination form.  Please also notify any beneficiaries that they have been nominated for any death grant.

There is also a provision for a spouse’s or civil partner’s pension and any dependent child(ren) born within one year of your leaving the scheme will also be entitled to receive a pension in the event of your death regardless of any nominations you may have made.

 

CURRENT VALUE OF YOUR PRESERVED BENEFITS

You may request a current value of your preserved benefits (maximum of 1 request per year) by completing the Current Value Quote form and the statement can be emailed to you or it will be sent to your home address.  Benefits are increased in line with inflation each year until they become payable on retirement.  It is very important that we are notified of any change of address or marital status. An annual statement of the current value of your preserved benefits will be sent to you automatically provided that we hold your current address.

 

TRANSFER OF PRESERVED BENEFITS

Preserved benefits may be transferred at any time before they become due for payment to:

(i)                   Your new employer’s pension scheme;

(ii)                 A personal pension plan; or

(iii)                An Inland Revenue approved annuity policy or buy-out bond with an insurance company of your choice.

If you wish to enquire about transferring your preserved benefits to another arrangement, please ask your new pension provider to contact the Committee requesting transfer details and this should usually be done as soon as possible after joining the new scheme.  Please provide them with your pension reference number and/or your National Insurance number and date of birth.

 
RE-ENTERING LOCAL GOVERNMENT EMPLOYMENT

If you re-enter Local Government Employment and therefore re-join NILGOS, you have the option of canceling your previous preserved benefits and combining your former period of membership with your membership in your new employment.  Or you can elect to keep the two periods of membership separate if this is more advantageous to you. If you wish to combine your two periods of employment, you must elect to do so in writing within 12 months of rejoining.