Are there protections for people who are close to retirement? (the "statutory underpin")

The Government announced specific protections for any individual who retires from the LGPS at age 65 with immediate entitlement to benefits and was within 10 years of that age on 1 April 2012. This protection is known as the "statutory underpin". The statutory underpin calculation will ensure that you will receive a pension no less than had you continued in the old scheme.

There are also other conditions -you must

  • Have been paying in the Scheme on 31 March 2012
  • Not have had a break in service of more than 5 years
  • Not have drawn any LGPS benefits
  • Not opt out of the Scheme

If the statutory underpin applies to you, at the point you retire a comparison will be made between the benefit you could have received had the scheme not changed from 1 April 2014 and the benefits you would be expected to receive as a result of the new scheme (if you are in the 50/50 scheme it's the pension you would have earned in the full scheme used in the calculation). If the benefit you would have expected to get had the old scheme remained is greater the difference will be added to your pension.

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