Local Government Pension Scheme
What happens to my pension if I’m made redundant?
Did you know that if you are made redundant and are over the age of 55 you can take your pension without any reduction to it?
For example Jess is 56 and has built up a pension of £5,000 a year, she has a Normal Pension Age of 66. If Jess is made redundant she will be able to claim the full £5,000 per year pension. If Jess had decided to take early retirement at 56 then her pension would have been reduced for taking it 10 years early by 40% to £3,000 a year.
This is a hard fought for benefit of your pension scheme. The Government is thinking about taking this entitlement away. GMB will be making a strong case that this benefit was part of the 2014 agreement on changes to the LGPS which GMB and the other Unions made with the government. It is a benefit GMB members hold dear. If you are under 55 and made redundant, your pension grows with inflation until you are old enough to take it.
Investing in Infrastructure Your pension contributions, and the contributions the employers make for you too, are invested together in one of 99 pension funds.
The Government wants to make it compulsory that LGPS pension funds invest your pension in infrastructure (things like roads, hospitals, schools etc). They want to use your money to boost infrastructure investment. A lot of private sector pension funds already own infrastructure in the UK and around the world. GMB believes your pension should be invested in your best interests to ensure that there is enough money to pay your pension when you reach retirement.
GMB is not opposed to investment in UK infrastructure if it provides an investment opportunity for your pension fund that is at least as good as other investments.
GMB doesn’t think the Government should tell councils what to do with your money. Government are not allowed to interfere with private pension funds in this way, so why should they in yours?
If government wants to touch any of the money in the LGPS they should first promise to pay off the deficit that is owed to LGPS members’ pension pots.
Remember your pension is your deferred wages
Posted: 13th May 2016