Local Government Pension Scheme by nAFD143


									               Local Government Pension Scheme
                    Hampshire Pension Fund
                      Retirement declaration form
                           Explanatory notes
        Please read these notes before completing the enclosed form.
What is the form about?
You need to provide us with information and options for your retirement before we can process your
retirement benefits under the Local Government Pension Scheme (LGPS).
HM Revenue and Customs (HMRC) require us to check if the total amount of benefits due to you
from all registered pension schemes exceeds a Lifetime Allowance set by HMRC as tax charges may
To do this we need you to declare your entitlement to any other benefits. Before your LGPS benefits
can be paid, you must complete and return the declaration form enclosed with these notes.
The notes explain the information you need to give on the form.
Please complete the form not earlier than 3 months before your intended retirement date.

What will happen if I do not return the form?
If you do not return the form, your payment may be delayed. If we have to pay your benefits without
having received your form, we will assume that you have exceeded the Lifetime Allowance and your
benefits will be taxed in full.
What will happen next?
We will calculate or pay your pension benefits when we receive
   this correctly completed form and copies of relevant documents.
   information from your employer about your membership and pay. If you have deferred (frozen)
    pension benefits, we already have this.
   if needed, authority from your employer or former employer to pay your pension benefits early.
   if you paid AVCs, the payment from the provider which they cannot pay before your retirement.

We will write to tell you how much your pension and any retirement lump sum will be. If there is a
lump sum, we will pay it on your retirement date or as soon after as possible. We will set up your
payroll record and make your first pension payment on the following payroll date.

Where do I return the form?
       Pensions Services
       Hampshire County Council
       The Castle
       SO23 8UB
                              Local Government Pension Scheme
                                     Hampshire Pension Fund
Section 1       Personal details

Please complete all parts of this section and enclose your birth certificate (clear photocopies are
acceptable) or a copy of the relevant pages of your passport.

Section 2       Bank and building society account details

Please give us full details of the bank or building society where you want your pension and any
retirement lump sum paid. We will pay your pension and any lump sum by BACs.

Unfortunately we cannot pay your pension or lump sum into a Post Office account because they
cannot accept these types of payments.

Section 3       Marital status and civil partnership

Please tick the appropriate box and enter the date of marriage, civil ceremony or divorce, if relevant.

Please enclose a copy of your marriage certificate, civil partnership certificate, decree absolute, final
order or judicial separation.

Please let us know if you have nominated your co-habiting partner so we can ensure that our records
agree. You will have sent us a ‘Nomination of co-habiting partner’ form with appropriate evidence.

You can nominate a co-habiting partner by downloading the form from www.hants.gov.uk/pensions.
You may nominate your partner only if you were paying into the LGPS on or after 1 April 2008.

Section 4       Giving up annual pension to receive a tax-free retirement lump sum

Section 4.1
You may choose to give up part of your annual pension to receive a tax-free lump sum. Doing so will
not affect the value of pensions payable to your dependants after your death.
If you have service before 1 April 2008, you will automatically receive a tax-free lump sum, but you can
still choose to increase this amount by giving up some annual pension.
For each £1 of annual pension that you give up, you will get £12 as a tax-free lump sum. There is a
limit to the total tax-free lump sum you can take, which is set by HMRC.
You can use your last annual benefit statement to help you estimate how much annual pension you may
wish to give up. Alternatively, you can indicate that you wish to take the maximum lump sum allowed.
If you ask for an estimate, we will request pay and service details from your employer and let you know
that we have done this. If there is a delay, please ask your employer if they have sent the information.
The option to give up pension to receive a tax-free lump sum is only available before we process your
retirement benefits. HMRC rules mean that we cannot change the amounts payable after we receive
your decision, so please ensure you are happy with your decision before returning the completed form.
Section 4.2
If you paid additional voluntary contributions (AVCs) to Prudential, Equitable Life or Zurich you may
use some or all of your in-house AVC fund as part of the tax free cash from your total pension pot.
This means you may be able to give up less or even none of your annual pension from your standard
benefits to receive maximum tax free cash. You must use any remaining amount of your AVC fund to
buy an annuity either from the open market or from the Local Government Pension Scheme.
If you want details of the options available before you make a decision about your in-house AVC fund,
tick the third option in this section. We will send you details after getting the information about the
current value of your AVC from the provider.

We must bring your LGPS benefits into payment all at once. Your AVC is part of your LGPS benefits.
    The AVC provider is not allowed to release the fund until your retirement date so there may be
      a delay of around four weeks before your benefits can be paid.
    If you pay AVCs in the month before you retire the delay may be around eight weeks, as your
      employer must send the final payment to the AVC provider before your fund can be released.

Section 5      Taking your benefits before your earliest retirement date

You can take voluntary early retirement and receive your pension benefits from age 60, provided you
have at least three months’ membership or have transferred pension rights into the LGPS.
If you retire voluntarily before age 65 or before your earliest retirement date (for those who meet the 85
year rule and are fully protected from its removal), your pension and lump sum will be reduced. The
table below shows the reductions, depending on how many years early you take your pension.
   Years         Pensions reduction %         Pensions reduction %          Lump sum reduction %
   early                male                         female                     all members
     1                     6                            5                             3
     2                    11                           11                             6
     3                    16                           15                             8
     4                    20                           20                            11
     5                    25                           24                            14
To pay you the reduced benefits, we need you to sign the declaration. This tells us that you are
voluntarily taking these benefits and that you understand that the reduction will be permanent.
If you would like an estimate of the reduced benefits before signing the declaration, please contact us.
We will provide your estimate as soon as possible, but your pension may be delayed while we contact
your employer for pay and service information.

If your employer has approved ill-health retirement, voluntary or compulsory redundancy, you
will receive full unreduced benefits and so you do not need to complete this section.

Section 6      Other pensions and compensation

HMRC sets a Lifetime Allowance. If the value of all your benefits exceed the allowance, you must pay
tax on the excess. Lifetime Allowances for the next three years are:
                  Tax year                             Lifetime Allowance
                 2010/2011                                  £1.8 million
                 2011/2012                                  £1.8 million
                 2012/2013                 £1.5 million (reduced from the previous year)
Most people’s benefits are within these limits, but under HMRC rules we must assess the value of your
benefits. If they exceed the allowance, we will apply tax charges to your LGPS pension and lump sum.
Section 6.1

Please provide details of any pensions that will:
   have a starting date before your LGPS benefits
   have a starting date on the same day as your LGPS benefits.
You should not declare:
 benefits payable under the state pension scheme, including state pension credit
 benefits to which you are entitled as the widow(er), surviving civil partner or other dependant of a
   member of any pension scheme
 benefits that will be payable after your LGPS pension starting date
Section 6.2
If you have any other benefits becoming payable on the same date as your LGPS benefits, please state
the order in which you want them assessed against the HMRC Lifetime Allowance. The order you
choose is important because it will decide which schemes will:
   be responsible for settling any tax liability if you exceed the Lifetime Allowance
   take the value of the others into account when assessing the total value of the Lifetime Allowance.
However, the order you state will not affect the total amount of any tax you pay. Your other pension
providers can tell you the percentage of Lifetime Allowance your other pensions are using up.
If your benefits exceed the Lifetime Allowance, the tax charge will be 55% of the excess lump sum and
25% of the excess pension (plus any PAYE deductions).
If HMRC has sent you a certificate under ‘transitional protection’ rules, you should give your pension
administrators a copy when any pension benefit (including a LGPS pension) is due. They will take
account of the protection when they assess your benefits against the Lifetime Allowance.
Section 6.3
Please give details of any transfers of pension rights to overseas pension arrangements on or after 6
April 2006. This should include the value of your crystallised benefits against the lifetime allowance.

Section 7       Declaration

Once you have completed all the sections of this form, please complete and sign the declaration and
return the form to the address shown, together with all relevant certificates.
Please ensure you send evidence of any name change that will allow us to verify your identity (we
cannot pay your benefits if you only send a birth certificate but you no longer use your maiden name).

If you intend to use part or all of your retirement lump sum to pay additional contributions to a
pension scheme, or to any other pension arrangement, this is known as ‘recycling’ and special tax rules
may apply. If you break the recycling rules, you will have to pay a tax charge of 40% to 55% of the
value of your retirement lump sum.

You can find guidance on recycling on the HMRC website: www.hmrc.gov.uk/pensionschemes
                           Local Government Pension Scheme
                                   Hampshire Pension Fund

Retirement declaration form
Please complete all sections of this form and send it as soon as possible to the address
on the last page.
We can pay your benefits only after receiving your completed form and all
relevant certificates.
Section 1       Personal details

Name                                                              Title

Postcode                                      Telephone
National Insurance no.                                              Date of birth

(last LGPS employer if claiming deferred benefits)
Reason for leaving

Date of retiring/leaving

Requested start date for payment of pension
(only if claiming deferred benefits)

If you are claiming early payment of your deferred benefits, the requested date of payment above should
be at least six weeks from the date you complete this form to give us adequate notice of your request.

Section 2       Bank or building society account details

Please complete the details below to tell us where you would like us to pay your pension and any
retirement lump sum. We will pay your pension by BACs. Unfortunately we cannot pay your pension
or lump sum into a Post Office account.
Name of bank/building society
Sort code                                            -                    -

Account holder’s name
Account number

If building society, roll number

Branch address and postcode

Signature                                                                     Date

                                                                                              Form – page 1 of 4
Section 3        Marital status / civil partnership

Please complete and tick the appropriate boxes and enclose all relevant certificates.

What is your status?
I am single and have never married                    I am legally separated
I am married                                          I have a civil partner
Enter the date of marriage / civil partnership:

I am a widow/widower                    My civil partnership has been               I am divorced
Enter the date of death of spouse / divorce / dissolution or revoking of civil partnership:

I have previously completed and returned the ‘Nomination of co-habiting partner’ form or I
am doing so now. (Please note, the option to make a nomination applies only to members who
were paying into the LGPS on or after 1 April 2008).

Section 4 Giving up part of your pension to receive a retirement lump sum

4.1      Do you wish to give up part of your annual pension to receive a tax-free lump sum?
Please tick one of the following three options.
1.     Yes – and I have shown the amount of pension I wish to give up below.

       Maximum allowed          or      Specific amount £…………..
                                        (The extra lump sum will be 12 times the amount you give here.)
2.     No – I do not want to give up any annual pension.
3.     Please send me an estimate* of my benefits before I make a decision.

* Important – for us to give you an estimate we need information from your employer. We will
process your request as soon as we can, but your retirement benefit payments may be delayed if your
employer delays sending us that information.
4.2      Do you have an AVC fund?                      Yes                 No        Please go to Section 5
If yes, please tick one of the options below:
1. I wish to use my AVC fund to maximise my overall tax free lump sum
2.    The amount of my AVC fund I wish to use to increase my lump sum is £…………
3.    Please send me details of the options available for my accumulated in-house AVC fund
      (this may delay payment as we need to get information from the AVC provider).
Important notice about AVCs
If you have an AVC, we will not be able to calculate or pay any of your pension benefits until
     we receive your written decision about your AVC.
     we receive the cheque from the AVC provider. They cannot pay the AVC to us without the last
      payment from your employer, or before your retirement date. This means that your pension may be
      delayed by at least four weeks after your retirement. If you pay AVCs in your final month, the delay
      may be around eight weeks.

                                                                                                   Form – page 2 of 4
Section 5       Taking your benefits before your earliest retirement date
(this section does not need to be completed if you are taking voluntary or compulsory redundancy
or any other retirement where there is no early payment reduction such as ill health or efficiency)
If you are voluntarily taking your benefits before your earliest retirement date, they will be reduced
under Local Government Pension Scheme (LGPS) regulations. If this applies to you, please tick the
following declaration*:

I declare that I am voluntarily applying for early payment of my benefits. I understand that
early payment will permanently reduce my benefits.

*If you wish to take your benefits before your earliest retirement date but you have not ticked the
above declaration, we will return this form to you.
If you are not sure whether this section applies to you or if you wish to have an estimate of these
reduced benefits before signing this declaration, please contact us on 01962 845588. We will process
your estimate request as soon as possible, but your benefit payments may be delayed because we will
need to contact your employer for pay and service information.

Section 6      Other pensions and compensation

6.1   Do you have any other occupational or personal pension benefits that will be payable before the
      day your LGPS pension starts or that are already in payment?
      (Do not include any state pension, spouse’s, civil partner’s or dependant’s pension you receive.)
      Yes        Please give details below:       No           Please go to Section 6.2.
                                                                                          % of
                                        Date pension was          Current amount of
Pension provider                                                                          Allowance
                                        payable from              annual pension
                                                                                            (if known)

6.2    Do you have other pension benefits becoming payable on the same date as your LGPS pension?

       Yes                                           No         Please go to Section 6.3.

      If yes, please give details below and state the order in which you want them to be assessed against
      the HMRC Lifetime Allowance:
                                                Amount of annual pension Order in which you
Pension provider                                and lump sum due                 want them to be

6.3      Have you transferred any pension rights to an overseas pension arrangement after 5 April 2006?
         Yes                                           No
If yes, please give details below, including the amount of crystallised benefits:

                                                                                                Form – page 3 of 4
      Section 7          Declaration

Once you have completed sections 1 to 6 of this form, please read the following statements
carefully and ensure you fully understand them. Then sign the declaration below.

If you have any questions, please phone us on 01962 845588 or email pensions@hants.gov.uk.

 I have read the accompanying notes and completed this form. All the information I have given on
  this form is correct and complete to the best of my knowledge.
 I will not use my retirement lump sum to make contributions to one or more registered pension
  schemes, in breach of HM Revenue and Customs (HMRC) recycling rules (see section 7 of the
 I understand that the decisions I have made on this form cannot be changed once Pensions
  Services has received and processed the form.
 If further tax becomes payable because the information I have given proves to be wrong, I
  understand that I will be liable to pay the tax charge and any resulting penalty that HMRC may

I have:

   provided all the necessary information and completed all sections
   signed section 2 to certify that my bank details are correct
   ticked the statement in section 5 of this form, if it applies to me
   enclosed the following certificates (clear photocopies are preferable to original certificates):

       My birth certificate or clear photocopy of my passport              My marriage certificate
       My civil partnership certificate                                    My decree absolute
       My civil partnership dissolution certificate                        My judicial separation
       Other documentation (please specify)
Please ensure that the enclosed documentation supports any change of name that you have had
(if you no longer go by your maiden name you need to send documents as well as your birth
certificate as we cannot pay your benefits without official verification of your current identity).

Please complete the form not earlier than 3 months before your intended retirement date.

Signed                                                                    Date

Please return your completed form, enclosing any certificates, to:
Pensions Services
Hampshire County Council
The Castle
Hampshire SO23 8UB
We will return original certificates.

     Hampshire County Council complies with the Data Protection Act 1998 and will use your data
     only for processing your pension rights
                                                                                                       Form – page 4 of 4

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