LGPS pensions are paid monthly, on the last banking day of the month.
- Your pension is paid directly into your bank or building society account by BACS (Bank Automated Clearing System).
- Unfortunately payments cannot be made into a Post Office account
- There is no facility to pay new pensioners into an overseas bank account.
When your pension starts, we will send you pay slips for the first three months.
After that, a pay slip will be sent to you in March, April, May and June of each year.
Does my pension increase with inflation?
Your pension benefits are increased annually in line with the increases in the Consumer Prices Index (CPI), based on the rise in the cost of living over the 12 months to the previous September.
The first increase you receive will be in the April following your retirement. It will be a proportion of the full increase due to you based on the number of months you have been retired for.
Subsequent years will be paid from the first Monday of the new financial year and therefore a proportion of the increase will be paid in April whereas your payment in May will reflect the full months increase.
Do I pay tax on the pension I receive?
At retirement you have the option to exchange part of your pension for a tax-free lump sum.
Your annual pension however, is taxable.
Initially when we set up your pension payment HMRC require us to put you on 0T tax code, which means that tax will be deducted at 20%.
We advise the Tax Office that your pension has started and in turn they advise us of the correct tax code for you, taking into account your personal tax position.
For further details on what you are entitled to when you draw your pension, please see the Brief Guide from the Resources list on the right hand of this page.
