They have underpin protection – will they have pension tax charges?
If a member’s pension is increased because of underpin protection, the increase is excluded for annual allowance purposes. They may still have a tax charge, but it’s based on their pension excluding the underpin addition. It is possible that a few members may have retired before 1 October 2023 under the old underpin rules, had […]
They have underpin protection and they die?
Death grants – underpin protection does not change the death grant if members die as an active member, as the death grant is a multiple of their pay and not the pension that they have built up. If a member dies after taking their pension, then the death grant is calculated based on their annual pension. […]
They have underpin protection and get divorced or their civil partnership is dissolved?
When members get divorced or their civil partnership is dissolved, the Court takes the value of their pension into account in any settlement. If a member’s pension includes an underpin amount, then that increase is included and, if their pension is shared, part of that increase will be passed to their former spouse or civil […]
They have underpin protection and their pension in the Remedy period includes pension debits or extra pension?
When a member takes their pension, NILGOSC will check the pension that they have built up from 1 April 2015 to 31 March 2022. We will compare the career average pension built up with what they could have built up in the final salary scheme, had it continued. If the final salary pension is higher, […]
NILGOSC doesn’t know if they have other public service pension scheme membership that could qualify them for underpin protection?
If members have membership in another public service pension scheme before 1 April 2012 they will need to tell us, when we ask them for this information. If a member is protected, when they take their pension, we will work out whether they are due any increase because of the underpin. NILGOSC has over 50,000 […]
They have underpin protection and they re-join the LGPS (NI)?
If a deferred member rejoins the LGPS (NI) on or after 1 October 2023 they can choose to combine their two periods of membership within 12 months of re-joining. Only employers can choose to extend this 12-month period for members. NILGOSC cannot do this. Members have a lot to consider when they are thinking about […]
They have underpin protection and transfer their pension from another public service pension scheme into the LGPS (NI)?
Transfer into the LGPS (NI) before 1 October 2023 – the McCloud Remedy applies to all public service pension schemes. Pension benefits that originally had protection in another scheme will continue to be protected in the LGPS (NI), provided that a member did not have a disqualifying break. When members take their pension, the underpin check […]
They transfer their pension out from the LGPS (NI) and have underpin protection?
If they are transferring to another public service pension, the scheme that they are transferring to will generally give them protection in that scheme. This protection will not be an underpin as this is unique to the Local Government Pension Schemes. Instead, members are given a choice between a career average pension and a final salary […]
They flexibly retire and have underpin protection?
On flexible retirement members can choose whether to take all or some of the pension they have built up. The underpin check is carried out when they flexibly retire, and if their pension increases, a proportion of the increase will be paid to match the proportion of benefits that they are taking that were built […]
They retire on ill-health and have underpin protections?
Retired before 1 October 2023 – If they retired on ill-health from deferred membership and are protected, NILGOSC will review the pension that they are being paid. If the pension they would have built up between 1 April 2015 and 31 March 2022 in the final salary scheme would have been higher than in the career […]
They are a pensioner with underpin protection?
Took their pension before 1 October 2023 – NILGOSC will review the pension that they are being paid. If the pension they would have built up between 1 April 2015 and 31 March 2022 in the final salary scheme would have been higher than in the career average scheme, then their pension will be increased. NILGOSC […]
They are a deferred member with underpin protection?
Left the LGPS (NI) before 1 October 2023 – NILGOSC will recheck these records and work out provisional underpin figures. The final underpin figures will not be worked out until they take their pension at retirement. Left the LGPS (NI) on or after 1 October 2023 – NILGOSC will include the underpin in the calculation of their […]