LGA updates the Brief Scheme Guide

Publication date: 07/08/2022 15:44:45

We’ve recently published our updated Brief Scheme Guide in line with changes from the LGA. You can find the latest version of the Brief Scheme guide on our forms and guides page. The most significant changes to the guide include the figures for the year 2022-2023 and an updated example of a pension build-up on page 15. As well as the addition of a new section, ‘Pension Age changes’ on page 24. This explains how the Government plan to increase the earliest age a member can take their pension;

Pension age changes

The Government has announced that the earliest age you can take your pension will increase from age 55 to 57 with effect from 6 April 2028. This does not apply if you have to take your pension early because of ill health.

You could be protected from this increase if you joined the LGPS before 4 November 2021. You could also be protected if you transferred a previous pension into the LGPS if certain conditions are met. You will only be able to use this protection when you take your LGPS pension if the LGPS rules allow you to take your pension before age 57.

The Department for Levelling Up, Housing and Communities (DLUHC) makes the LGPS rules. It has not yet confirmed if it will allow members who qualify for protection to take their LGPS pension before age 57 from 6 April 2028 onwards.

We will update this guide when DLUHC changes the Scheme rules to reflect the increase in the normal minimum pension age.

The LGA has mentioned the pension age changes throughout the guide in case it impacts the members' retirement planning.

In June last year, The MoneyHelper replaced the three existing providers of government-sponsored financial guidance (the Money Advice Service, the Pensions Advisory Service (TPAS) and Pension Wise). MoneyHelper provides free and impartial debt advice, money guidance and pension guidance to members of the public. You can now find contact details for The MoneyHelper service under the section ‘Help with pension problems’.

This guide is a great resource for members wanting a simple overview of the scheme. It’s important that you give scheme members the necessary LGPS guidance. For example, a new starter should always have a new member form and brief scheme guide included when they get their contract of employment, these can all be found on our  forms and guides page.

Categories: