Retirement declaration form - a guide

Members who are about to take their LGPS pension must complete the retirement declaration form.

Why you need to complete the form

The purpose of the form is for you to provide us with your:

1. bank/building society details for payment
2. date of birth declaration with a copy of your birth certificate or passport
3. partnership status declaration
4. decision if you choose to convert some of your annual pension to a lump sum
5. decision about your AVC fund if you have been paying into one
6. Lifetime Allowance Declaration.

How you get the form and return it

If you are a current scheme member, your employer sends the Retirement Declaration form with your retirement letter.  Complete the form and return it to your employer. If you do not know who your employer is, please ask your line manager.

If you are a deferred scheme member (stopped paying in and your pension is held in the fund), we send the Retirement Declaration form to you with a letter. Complete the form and return it to the Pension Section. The return address is on the letter.

If you are a pension credit scheme member (pension as part of a divorce settlement), we send the Retirement Declaration form to you. Complete the form and return it to the Pension Section. The return address is on the letter.

Completing the form

Please use black ink and complete all the sections in BLOCK CAPITALS. Please ensure that you sign the form twice, at the bottom of page 2 and page 4.

Your personal details - Complete your personal details in the boxes provided.

Payment method - Complete your payment details in the boxes provided. Incorrect information could cause your payment to be delayed. Some useful points to note are:

• The bank account for payment must be an individual account in your name or a joint account on which you are named. You must complete the ‘Account Holder Name’ box. Please note that if you choose to have payments direct into an Individual Savings Account (ISA) they may be returned to us if the account limit is exceeded.
• You can find all your account details on your cheque book or bank statement. If you do not know your account details you need to ask your bank or building society.
• If your account number is less than 8 digits you need to add zeros at the beginning, e.g. an account number 12345 should be written as 00012345.
• If your account number is more than 8 digits you should contact your bank or building society to ensure payment is made correctly.
• If you want your payment made to a building society account you may need to complete the ‘Account Roll Number’ box in addition to the ‘Account No.’ box. If you are unsure whether your account requires a roll number, please check with your building society.
• If you want your payment made to a post office account you must check it accepts BACS (automated direct debits). Some types of post office accounts do not accept BACS payments.
• If you want your payment made to an overseas bank account you need to download an overseas mandate form

Date of Birth Declaration - Complete the box and ensure a photocopy of your birth certificate or a photocopy of a passport is enclosed.

Partnership Status Declaration - Tick the box which is relevant to your partnership status.

Election to convert pension to lump sum - You have the option to convert some of your annual pension to a lump sum payment. Information to help you with your decision is provided in your estimate. It shows standard benefits and maximum conversion benefits. Your standard benefits are your annual pension and lumps sum before any conversion. Your maximum conversion benefits show the maximum lump sum you can receive and the reduced annual pension.

Tick one of the 3 boxes:

1. Take standard benefits, or
2. Take maximum conversion of annual pension to lump sum, or
3. Take your own choice of conversion, above standard benefits but not exceeding the maximum conversion. Decide by choosing the amount of annual pension you are prepared to give up for a lump sum or the amount of lump sum you would like to create.

In House Additional Voluntary Contribution (AVC) Holders ONLY (except pension credit members) - Only members who paid AVCs need to complete this section. Information about your AVC is with your estimate which helps you to make decisions and complete this section. Tick one option only.

Sign and date the form at the bottom of page 2.

Completing the Lifetime Allowance Declaration

The Lifetime Allowance is the total capital value of all your pension arrangements which you can build up without paying extra tax. If the value of your benefits when you draw them exceeds the Lifetime Allowance a tax charge will be made against the excess. Most scheme member’s pension savings will be significantly less than the allowance.

HM Revenue & Customs (HMRC) legislation requires that we obtain a written declaration from you stating the details of any pension benefits already in payment, or due for payment, before the date your LGPS benefits are payable. We then compare the total benefits against the Lifetime Allowance. You must tell us about:

• Other pension benefits
• LGPS benefits
• Sharing orders awarded as part of divorce proceedings which are already in payment, or due for payment before the date this LGPS benefit is payable.

Pensions that were already in payment before April 2006 - Give the pension provider’s name. State the annual rate of the pension in payment at the date your LGPS benefits are due. The annual rate should include any increases awarded. If you do not have this information you should contact your previous pension provider.

Pensions that will have commenced payment on or after April 2006 but before the due date of these benefits

• Give the pension provider’s name
• State the percentage of the Lifetime Allowance which you should have been told at the time you drew the pension
• State if cash is protected under Primary Protection which you should have been told at the time you drew the pension
• State the date the pension became payable.

If you do not have this information you should contact your previous pension provider.

Pensions from other arrangements coming into payment on the same date as these benefits - Give the pension provider’s name.

Overseas Transfers Out on or after April 2006

• Give the pension provider’s name
• State the date the pension was transferred
• State the percentage of the Lifetime Allowance which you should have been told at the time you transferred the pension.

If you do not have this information you should contact your previous pension provider.

Benefits commuted to a one-off lump sum on or after April 2006 - Give the pension provider’s name

Sign and date the form at the bottom of page 4.

Please remember to sign the form twice, at the bottom of page 2 and page 4.