[ARCHIVED CONTENT] The Local Government Pension Scheme

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The Local Government Pension Scheme

Use of accumulated AVCs to provide additional pension under the Scheme – Regulation 66

Regulation 66 of the Local Government Pension Scheme Regulations 1997 as amended ("the LGPS Regulations") provides an opportunity for a member to use the accumulated value of his AVCs to provide a pension under the Scheme. A member who leaves his employment with entitlement to the immediate payment of retirement benefits may elect for the accumulated value of his AVCs to be used to provide additional pension under the Scheme. Regulation 66(5) provides that a member who has made such an election shall become entitled to such additional pension as is shown in guidance issued by the Government Actuary. The purpose of this note prepared by the Government Actuary’s Department is to provide the guidance required by Regulation 66(5). The note has been prepared for the Department of Transport, Local Government and the Regions and is issued to them for onward transmission to administering authorities and employing authorities.
The tables attached to this note provide factors which show the additional pension to the member for each £100 of accumulated AVCs, according to age at the date the member becomes entitled to the immediate payment of retirement benefits. Table 1 applies to members who become entitled to the immediate payment of retirement benefits under Regulation 25 (normal retirement), 26 (redundancy etc) or by virtue of an election under Regulation 31 (early payment). Table 2 applies to members who become entitled to an ill-health pension under Regulation 27. Separate factors are provided for men and women, and for married and unmarried members. Table 1 factors for members over age 70 and Table 2 factors for members under age 30 will be provided by the Government Actuary’s Department on request.

3 Under the LGPS Regulations, the pension to a member’s spouse and children after his death are stated as fractions of his pension. Thus the contingent pension to a member’s spouse, for example, will be increased by half the additional pension provided for the member who elects for the accumulated value of his AVCs to be used in this way. Members who are not married when they retire are, on average, less likely to be survived by a spouse and/or children entitled to a pension under the LGPS Regulations than members who are married. Accordingly, the tables attached show somewhat higher pensions for members aged over 39 who are not married when they retire than for members who are married. The more favourable terms applicable to single members should be used only when the administering authority is satisfied that the member is not married.

Period for which the factors apply

4. The factors are calculated in accordance with assumptions which are consistent with market conditions current at the date of issue to the Department. If and when market conditions alter significantly in the future, it will be necessary to issue revised factors.

R T Foster

27 December 2001

Table 1 – all retirements except on grounds of ill health

Amount of additional annual pension for every £100 of accumulated AVCs

Age at date member becomes entitled to an immediate pension in years and complete months		Pension (£) for a member who is married		Pension (£) for a member who is not married
from	to	male	female	male	female
50 years and 0 months 50 years and 6 months 51 years and 0 months 51 years and 6 months 52 years and 0 months 52 years and 6 months 53 years and 0 months 53 years and 6 months 54 years and 0 months 54 years and 6 months	50 years and 5 months 50 years and 11 months 51 years and 5 months 51 years and 11 months 52 years and 5 months 52 years and 11 months 53 years and 5 months 53 years and 11 months 54 years and 5 months 54 years and 11 months	4.57 4.60 4.64 4.67 4.71 4.75 4.80 4.84 4.89 4.94	4.52 4.55 4.59 4.62 4.66 4.70 4.75 4.79 4.84 4.89	4.79 4.84 4.89 4.94 4.99 5.05 5.10 5.17 5.23 5.30	4.60 4.64 4.68 4.72 4.77 4.81 4.86 4.92 4.97 5.03
55 years and 0 months 55 years and 6 months 56 years and 0 months 56 years and 6 months 57 years and 0 months 57 years and 6 months 58 years and 0 months 58 years and 6 months 59 years and 0 months 59 years and 6 months	55 years and 5 months 55 years and 11 months 56 years and 5 months 56 years and 11 months 57 years and 5 months 57 years and 11 months 58 years and 5 months 58 years and 11 months 59 years and 5 months 59 years and 11 months	5.00 5.05 5.11 5.17 5.23 5.29 5.36 5.42 5.49 5.56	4.94 5.00 5.05 5.11 5.17 5.24 5.30 5.37 5.43 5.50	5.37 5.45 5.52 5.60 5.68 5.77 5.85 5.94 6.04 6.13	5.09 5.15 5.22 5.29 5.36 5.43 5.50 5.58 5.65 5.73
60 years and 0 months 60 years and 6 months 61 years and 0 months 61 years and 6 months 62 years and 0 months 62 years and 6 months 63 years and 0 months 63 years and 6 months 64 years and 0 months 64 years and 6 months	60 years and 5 months 60 years and 11 months 61 years and 5 months 61 years and 11 months 62 years and 5 months 62 years and 11 months 63 years and 5 months 63 years and 11 months 64 years and 5 months 64 years and 11 months	5.63 5.71 5.78 5.86 5.94 6.03 6.11 6.20 6.29 6.39	5.58 5.65 5.73 5.81 5.89 5.97 6.06 6.15 6.25 6.34	6.23 6.33 6.44 6.54 6.66 6.77 6.89 7.01 7.14 7.27	5.81 5.90 5.98 6.07 6.16 6.26 6.35 6.46 6.56 6.67
65 years and 0 months 65 years and 6 months 66 years and 0 months 66 years and 6 months 67 years and 0 months 67 years and 6 months 68 years and 0 months 68 years and 6 months 69 years and 0 months 69 years and 6 months	65 years and 5 months 65 years and 11 months 66 years and 5 months 66 years and 11 months 67 years and 5 months 67 years and 11 months 68 years and 5 months 68 years and 11 months 69 years and 5 months 69 years and 11 months	6.48 6.58 6.68 6.79 6.90 7.01 7.12 7.24 7.36 7.49	6.44 6.55 6.66 6.77 6.88 7.00 7.12 7.25 7.38 7.52	7.40 7.54 7.69 7.84 7.99 8.15 8.32 8.49 8.67 8.85	6.78 6.90 7.02 7.14 7.27 7.40 7.54 7.69 7.83 7.99
70 years and 0 months	70 years and 5 months	7.62	7.66	9.04	8.15

Table 2 –retirements on grounds of ill health, page 1 (ages 50 to 69)

Amount of additional annual pension for every £100 of accumulated AVCs

Age at date member becomes entitled to an immediate pension in years and complete months		Pension (£) for a member who is married		Pension (£) for a member who is not married
from	to	male	female	male	female
50 years and 0 months 50 years and 6 months 51 years and 0 months 51 years and 6 months 52 years and 0 months 52 years and 6 months 53 years and 0 months 53 years and 6 months 54 years and 0 months 54 years and 6 months	50 years and 5 months 50 years and 11 months 51 years and 5 months 51 years and 11 months 52 years and 5 months 52 years and 11 months 53 years and 5 months 53 years and 11 months 54 years and 5 months 54 years and 11 months	4.70 4.75 4.79 4.84 4.89 4.95 5.00 5.05 5.11 5.17	4.76 4.81 4.86 4.92 4.97 5.03 5.08 5.14 5.20 5.27	5.00 5.06 5.13 5.20 5.27 5.34 5.42 5.49 5.57 5.66	4.90 4.96 5.02 5.08 5.14 5.21 5.28 5.35 5.42 5.50
55 years and 0 months 55 years and 6 months 56 years and 0 months 56 years and 6 months 57 years and 0 months 57 years and 6 months 58 years and 0 months 58 years and 6 months 59 years and 0 months 59 years and 6 months	55 years and 5 months 55 years and 11 months 56 years and 5 months 56 years and 11 months 57 years and 5 months 57 years and 11 months 58 years and 5 months 58 years and 11 months 59 years and 5 months 59 years and 11 months	5.23 5.29 5.35 5.42 5.49 5.56 5.63 5.70 5.77 5.85	5.33 5.40 5.47 5.54 5.61 5.69 5.76 5.84 5.93 6.01	5.74 5.83 5.92 6.01 6.11 6.21 6.31 6.42 6.53 6.64	5.58 5.66 5.75 5.84 5.93 6.02 6.12 6.22 6.32 6.42
60 years and 0 months 60 years and 6 months 61 years and 0 months 61 years and 6 months 62 years and 0 months 62 years and 6 months 63 years and 0 months 63 years and 6 months 64 years and 0 months 64 years and 6 months	60 years and 5 months 60 years and 11 months 61 years and 5 months 61 years and 11 months 62 years and 5 months 62 years and 11 months 63 years and 5 months 63 years and 11 months 64 years and 5 months 64 years and 11 months	5.93 6.01 6.10 6.18 6.27 6.37 6.46 6.56 6.66 6.76	6.10 6.20 6.29 6.39 6.49 6.60 6.71 6.82 6.93 7.05	6.76 6.88 7.01 7.14 7.27 7.41 7.55 7.69 7.84 8.00	6.53 6.64 6.75 6.86 6.98 7.11 7.24 7.37 7.51 7.65
65 years and 0 months 65 years and 6 months 66 years and 0 months 66 years and 6 months 67 years and 0 months 67 years and 6 months 68 years and 0 months 68 years and 6 months 69 years and 0 months 69 years and 6 months	65 years and 5 months 65 years and 11 months 66 years and 5 months 66 years and 11 months 67 years and 5 months 67 years and 11 months 68 years and 5 months 68 years and 11 months 69 years and 5 months 69 years and 11 months	6.86 6.97 7.08 7.20 7.31 7.43 7.56 7.68 7.81 7.95	7.18 7.31 7.44 7.57 7.71 7.86 8.01 8.16 8.32 8.48	8.15 8.32 8.49 8.67 8.85 9.04 9.23 9.43 9.64 9.85	7.80 7.95 8.11 8.27 8.44 8.62 8.80 8.98 9.17 9.37

Table 2 –retirements on grounds of ill health, page 2 (ages 30 to 49)

Amount of additional annual pension for every £100 of accumulated AVCs

Age at date member becomes entitled to an immediate pension in years and complete months		Pension (£) for a member who is married		Pension (£) for a member who is not married
from	to	male	female	male	female
30 years and 0 months 30 years and 6 months 31 years and 0 months 31 years and 6 months 32 years and 0 months 32 years and 6 months 33 years and 0 months 33 years and 6 months 34 years and 0 months 34 years and 6 months	30 years and 5 months 30 years and 11 months 31 years and 5 months 31 years and 11 months 32 years and 5 months 32 years and 11 months 33 years and 5 months 33 years and 11 months 34 years and 5 months 34 years and 11 months	3.54 3.56 3.57 3.59 3.61 3.63 3.65 3.67 3.69 3.71	3.56 3.58 3.59 3.61 3.63 3.65 3.67 3.69 3.71 3.74	3.54 3.56 3.57 3.59 3.61 3.63 3.65 3.67 3.69 3.71	3.56 3.58 3.59 3.61 3.63 3.65 3.67 3.69 3.71 3.74
35 years and 0 months 35 years and 6 months 36 years and 0 months 36 years and 6 months 37 years and 0 months 37 years and 6 months 38 years and 0 months 38 years and 6 months 39 years and 0 months 39 years and 6 months	35 years and 5 months 35 years and 11 months 36 years and 5 months 36 years and 11 months 37 years and 5 months 37 years and 11 months 38 years and 5 months 38 years and 11 months 39 years and 5 months 39 years and 11 months	3.73 3.76 3.78 3.80 3.83 3.85 3.88 3.90 3.93 3.95	3.76 3.78 3.81 3.83 3.85 3.88 3.90 3.93 3.96 3.98	3.73 3.76 3.78 3.80 3.83 3.85 3.88 3.90 3.93 3.96	3.76 3.78 3.81 3.83 3.85 3.88 3.90 3.93 3.96 3.99
40 years and 0 months 40 years and 6 months 41 years and 0 months 41 years and 6 months 42 years and 0 months 42 years and 6 months 43 years and 0 months 43 years and 6 months 44 years and 0 months 44 years and 6 months	40 years and 5 months 40 years and 11 months 41 years and 5 months 41 years and 11 months 42 years and 5 months 42 years and 11 months 43 years and 5 months 43 years and 11 months 44 years and 5 months 44 years and 11 months	3.98 4.01 4.04 4.07 4.10 4.13 4.16 4.19 4.23 4.26	4.01 4.04 4.07 4.10 4.13 4.17 4.20 4.23 4.27 4.30	3.99 4.03 4.07 4.11 4.15 4.19 4.24 4.28 4.33 4.38	4.02 4.05 4.08 4.12 4.15 4.19 4.23 4.27 4.31 4.35
45 years and 0 months 45 years and 6 months 46 years and 0 months 46 years and 6 months 47 years and 0 months 47 years and 6 months 48 years and 0 months 48 years and 6 months 49 years and 0 months 49 years and 6 months	45 years and 5 months 45 years and 11 months 46 years and 5 months 46 years and 11 months 47 years and 5 months 47 years and 11 months 48 years and 5 months 48 years and 11 months 49 years and 5 months 49 years and 11 months	4.30 4.33 4.37 4.41 4.44 4.48 4.52 4.57 4.61 4.65	4.34 4.38 4.41 4.45 4.49 4.54 4.58 4.62 4.67 4.72	4.43 4.48 4.53 4.58 4.64 4.69 4.75 4.81 4.87 4.93	4.39 4.43 4.48 4.53 4.58 4.63 4.68 4.73 4.78 4.84

Updated: 21/01/02