New look Local Government Pension Scheme for England & Wales. New scheme to come into force at 1 April 2008. Amicus Pensions Team. Officers: - John Allott, National Officer Bryan Freake, Pensions Officer National Committee Member: - Dick Banks Amicus Local Government Pension Committee: -
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New scheme to come into force at 1 April 2008
Comparing the main elementsin the current scheme with the Regulations for the new scheme
Final Salary Scheme
The new scheme will remain a final salary scheme.
Enhancement cannot exceed potential service to age 65.
If a members’ employment is terminated on the grounds that his ill health renders him permanently incapable of doing his current job and he has a reduced likelihood of obtaining gainful employment before his normal retirement age they may qualify for a benefit.
“Gainful employment” is defined as paid employment for not less than 30 hours in each week for a period of not less than 12 months
*Minimum retirement age for new staff is age 55. For existing staff, it is age 50 until April 2010 - when it goes up to 55 for everyone in line with the Finance Act.
* Limited to potential service to age 65.
Death in service benefits
Summary and next steps
Main changes are:
Members can now earn benefits up to the maximum allowed by the Finance Act
Currently lifetime allowance £1.5m Annual allowance £215,000.