COVID-19 and your pension
Exit cap payment
The exit payment restrictions were revoked on 12 February 2021. It was concluded that the restrictions had unintended consequences. The government have stated:
- it is still vital that exit payments deliver value for the taxpayer,
- employers should always consider that exit payments are fair and proportionate, and
- HM Treasury will bring forward proposals at pace to tackle unjustified exit payments.
If you think this could affect you, please contact your employer.
On 4 November 2020 the government introduced a £95,000 cap on the total value of an exit payment to employees in the public sector. The cap includes costs to the employer for releasing a pension early. It could impact your pension. If you think this could affect you, please contact your employer.
The McCloud ruling is about discrimination in public sector pension schemes.
The government confirms that you do not have to make a claim for your pension benefits to be brought in line with this ruling. Many members will not see an increase in their pension benefits and any increase is likely to be small. We will keep you updated.
Guaranteed Minimum Pension (GMP) consultation
Members of the public and interested bodies are invited to respond to the government consultation about GMPs by 30 December 2020.
If you wish to respond to the consultation, please view the Public Service Pensions: Guaranteed Minimum Pension Indexation consultation
There have been articles in the news about the fall in stock markets and the impact on pension schemes. There may be an impact on defined contribution pension schemes, but the LGPS is a defined benefit pension scheme. It is not linked to stock market performance.
Short term investment values of the LGPS fund may vary. However, LGPS long-term investments are securely managed to address any longer term impacts.
LGPS members can be assured that their pension, whether in payment or built up to date, will be unaffected.
The Kent Pension Fund has investments with the Woodford Equity Income Fund. You may have seen articles about this in the press. View the Kent Pension Fund - Woodford Equity Income Fund statement. Current, deferred, pensioner and dependent pensioner members of the Kent Pension Fund should be reassured this will not affect their pension entitlement.