This page contains the most frequently asked questions we receive from our Local Government Pension Scheme (LGPS) members about their pension with Derbyshire Pension Fund.
We aim to give you the answers to these questions on this page and through links to our other webpages. If you’re still unsure after going through the answers, please contact us.
Quick links
Retirement
Annual benefit statement
Understanding your pension
Retirement
There's a lot to consider when you're thinking of retiring. If these FAQs don't answer your question, you can find more information in the retirement section.
When can I retire and take payment of my pension?
If you leave employment between the age of 55 to 75, we’ll write to you with your retirement options.
Your pension will be reduced if you choose to take payment earlier than your State Pension age. This is because we’ll pay you for a longer period of time.
We may be able to pay your pension at any age if you meet the ill health criteria.
I am 55 or over. How long after I leave my job will I get my pension?
We’ll strive to pay your first pension payment on the pension pay day following your retirement date. To make sure this can happen, we need your leaving details and final pay information from your employer.
You can visit the steps to receiving your pension benefits page for more details on our retirement process.
Can I take some or all of my pension as a lump sum?
Most of our members can choose to convert 25% of their pension to a tax-free cash lump sum.
You can use the ‘Voluntary retirement benefit projector’ on My Pension Online to find out the value of your lump sum at different retirement dates. If you’ve already completed the access form and registered for your account, go to your ‘Dashboard’, then:
Pension benefits >> Benefit projectors >> Voluntary retirement
You can also visit our lump sums and tax page.
Annual benefit statement
We produce annual benefit statements for our active and deferred members. These statements give you an estimate of your pension benefits built up in your pension account up until the last 31 March.
Where is my annual benefit statement?
We issue annual benefit statements online to our secure member self-service portal My Pension Online.
You can sign up to join My Pension Online by completing the access form.
We’ll load a copy of your annual benefit statement onto your My Pension Online account as soon as it’s ready.
If you’ve already registered for your account, go to your ‘Dashboard’, then:
Documents >> My documents
If your annual benefit statement isn’t available on your account, there could be many reasons why your annual pension statement isn’t ready yet.
If you’re currently paying in, please go to our active member annual benefit statement page.
If you’re no longer paying in, please go to our deferred member annual benefit statement page.
We also stopped sending hardcopies in the post when My Pension Online launched. Please contact us if you’d prefer to receive a printed copy to your home address in the future.
Why isn't the service shown on my statement the same as my actual service?
The service shown on your statement won’t match your actual service in your post if you’ve been part time at any point before 1 April 2014.
We reduce the service recorded on your record to reflect your part time service. We still use your full-time equivalent pay when working out the final salary part of your pension. For example, if you worked half time for 10 years, this will be recorded as 5 years’ service.
If you’ve taken part in any industrial action, these days don’t usually count as pensionable service either.
Why are my figures lower on my latest statement compared to last year?
This is likely to be because your employer has provided some revised pay information. If this has happened, the final salary part of your pension may have been affected. You may need to query this with your employer if you think this is wrong.
What if I don't understand some of the details on my statement?
You can contact us if there’s anything about the statement you don’t understand, and a member of our team will be happy to help.
If you’re currently paying in, you can visit our active member annual benefit statement page.
If you’re no longer paying in, you can visit our deferred member annual benefit statement page.
Understanding your pension
Understanding your pension can sometimes be quite complicated. If these FAQs don't answer your question, you can find more information in the understanding your pension section.
How much does my employer pay?
The LGPS is a defined benefit scheme and is different to a personal pension.
Your employer’s contribution rate is worked out by our Fund’s actuary based on investment growth and the profile of their employees’ membership. This value represents the amount of money needed to make sure there are enough funds available to cover their employees’ future retirements.
Rather than their contribution and your contribution going into your pension 'pot', your pension is calculated based on your membership and pay.
All the employers’ contributions rates are detailed in the latest actuarial valuation report.
How do my other pensions affect my LGPS pension?
There are tax controls in place that mean we may need to ask you about any other pensions that you have.
For further information go to our annual allowance and lifetime allowance pages.
What is the Rule of 85?
The Rule of 85 is a protection for members who joined the LGPS before 1 October 2006. If you meet the rule of 85, your service before 1 April 2008 may be protected from reductions if you retire early.
If you qualify for the rule of 85, we’ll automatically apply the protection when you retire.
To find out more, you can visit our rule of 85 page.
How much will my pension be if I defer my benefits?
You can use the ‘Deferred benefits’ projector on My Pension Online. If you’ve already completed the access form and registered for your account, go to your ‘Dashboard’, then:
Pension benefits >> Benefit projectors >> Deferred benefits
What gets paid out when I die?
It depends on whether you are paying into our Fund, have deferred benefits or are in payment of your pension benefits when you die.
If you’ve already completed the access form for My Pension Online and registered for your account, you can use a benefit projector to work out how much your survivor(s) benefits might be worth. Go to your ‘Dashboard’, then go to:
Pension benefits >> Benefit projectors
The type of death projector available will depend on your status:
- active members: You can use the ‘Death in service’ projector
- deferred members: You can use the ‘Death in deferment’ projector
- pensioner members: You can use the ‘Death on pension’ projector
You can nominate who you would like to receive any lump sum payable from our Fund in the event of your death by completing an expression of wish form. You can find this on our forms and guides page.