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Active Member Annual Benefit Statements Frequently Asked Questions - 2024

If you are an existing member of the Nottinghamshire Local Government Pension Scheme you can access further information on your ABS here....

Why haven't I received an Annual Benefit Statement? 

Annual Benefit Statements are due to be issued in August 2024. 

You may not receive a 2024 statement due to:

  • not being an active member of the scheme at 31 March 2024
  • having left the scheme on or after 31 March 2024
  • where the Nottinghamshire Pension Fund is finalising or awaiting information from the relevant employers which is required before a statement can be produced.

If I have a query on the details in my statement what should I do?

We have tried to cover most FAQs throughout these pages and the Guidance Booklet which should be read in conjunction with your statement.

If your query relates to the pay used in section 5 'Pensionable Pay as at 31/03/2024' please contact your employer in the first instance as this is information provided by them.

If your pension benefits have been changed as a result of your enquiry you will be issued with a re-print. Please note re-prints will only be issued at the end of November 2024.

If your query relates to the personal details such as an incorrect address, use the forms in the change of details section. Re-prints will not be issued but will be reflected in your 2025 statement.

If you still have a query after reading this please contact us.

I don't agree with the membership in Section 4

This section will show your service in years and days (years/days). If you have had any period of part time employment, the membership quoted will have been calculated to reflect the part time hours worked and will be less than the calendar length. For example, if you work 50% of full time hours for 2 years, you will be credited with 1 year of membership in the LGPS.

When do I qualify for scheme benefits?         

If you joined the LGPS on or after 1 April 2014, with no earlier period of LGPS membership in England or Wales and having not transferred any previous pension rights into the LGPS, then you MUST attain 2 years scheme membership in order to qualify for benefits. The projections made on your statement assume that you will qualify for a benefit even if you do not meet the criteria currently. However, you are covered from day one for death benefits.

Why is my Lump Sum at NPA the same value or less than my Lump Sum at 31/03/2024?

Members with service prior to April 2008 will automatically be entitled to a Lump Sum Retiring Allowance when they retire. We show this figure with a value at 31/03/2024 and also a value projected to Normal Pension Age (NPA) albeit without any projected salary increases as they are not known at the time of calculation.

The regulations allow for late retirement increases to your Lump Sum if you take it beyond age 65. Your projected benefits at NPA are based on State Pension Age (SPA) and if this is higher than age 65, we will have applied these increases to your Lump Sum at NPA in previous years. However, the factors we use to increase your lump sum, which are determined by the Government Actuary’s Department (GAD), have recently changed. For some members there will now be no late retirement increases on their lump sum despite statements previously including this.

These changes do not affect your entitlement to Pensions Increases after you leave which are separate to the late retirement increases.

Please be aware that all pension figures in your ABS are provided as a snapshot of your accrued benefits at the year end and do not represent benefits that may be paid upon retirement as these will be subject to a variety of different factors such as, but not limited to, early retirement reductions, changes to final pay, late retirement increases, and of course changes to rules and regulations in the interim period between now & your retirement date.

Does my statement include a late retirement increase? 

If you have gone past your Normal Pension Age (NPA) at 31 March 2024, the total value of your benefits will include any late retirement increases as they apply currently. The increase factors are not guaranteed and are subject to being changed.

Does my statement take account of any early retirement reduction? 

Your benefits do NOT include any early retirement reduction which might apply if you were to retire before your Normal Pension Age (NPA). For further information, please visit the LGPS member website.

What if I contribute to the LGPS under another employment?  

You will receive a separate statement in respect of each of your pensionable employments.

What if I also have a deferred benefit under the LGPS?

You will receive a separate statement for any deferred benefit you may have from an earlier period of LGPS membership.

Can I pay more to increase my benefits?       

There are 2 in-house options available to you. You can either make Additional Voluntary Contributions (AVCs) or you can elect to purchase extra pension by making Additional Pension Contributions (APCs).

What happens if I am unable to work because of an illness?

If you have been absent from work because of an illness and you have received reduced or nil pay as a result, your pension benefits will continue to build up whilst you are still employed. If your employments is then terminated by your employer on the grounds of permanent ill health, then your retirement benefits will become payable immediately without reduction. See the Ill Health Retirement Guide for further information.

Will I be affected by the Annual Allowance?

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 increased to £60,000 from 6 April 2023. For the tax years 2016/17 to 2022/23 it was £40,000.

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.

It is your personal responsibility to understand whether or not you are approaching the annual allowance maximum. Please see the LGPEN 114 Pensions Taxation Annual Allowance factsheet on our website for more information. You may wish to seek independent financial advice if you have any questions regarding this. Nottinghamshire Pension Fund cannot give financial advice.

Has my Pension Sharing Order deduction been applied?       

If you have a pension sharing order applied to your benefits and it has been processed by this office, it will be reflected on your statement.

Am I affected by 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 Member website, including a short video. 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 protection under the McCloud remedy. If you qualify, we will automatically apply the protection when you take your LGPS pension. However, we have a huge amount of work to do to gather the information we need and to update our systems therefore information has not provided in this year’s statement but will be provided in annual benefit statements from 2025.

If you were a member of another public service pension scheme before 1 April 2012 you may have protection in relation to that period of service, even if you have not transferred these benefits into your Notts Pension. It is important that you let us know about any relevant pension scheme membership that you haven’t transferred to us so that we can assess if you are entitled to any protection. You can do this by writing to us and providing evidence of your service from your previous scheme.

What if I want to request further estimates of my pension benefits?

In all instances the Annual Benefit Statement  should be sufficient to assist you in understanding your pension benefits. Further estimates will only be provided to you for the following reason:

  • Retirement at your own request within the next 12 months and where you are over age 55