- Published: Monday, 14 September 2020 16:15
Members will be receiving their Annual Statement from Tayside Pension Fund which is the local fund for the Scottish Local Government Pension Scheme (LGPS).
We've done a brief guide giving you a bit more background to the way your pension is worked out and given a made up example breaking down the 2 main calculations given in the Statement.
We hope this helps your understanding of the Pension Statement.
Click The image For the Guide
For more details of your LGPS pension see the following links:
https://www.taysidepensionfund.org/ - The Tayside Pension Fund website - Full of great info.
https://pensions.gov.scot/local-government - The Local Government Pension page on the Scottish Public Pensions Agency (who help run and oversee the scheme in Scotland).
https://www.unison-scotland.org/campaigns/pensions/ - UNISON Scotland's own Pensions campaigning an information pages.
NB: There are 2 big things about the Local Government Pension that members often do not realise:
1 - The 10 Year Guarantee: This essentially guarantees that you or your estate (or a nominated recipient) must receive at least 10 years worth of pension once retired. So if you pass before ten years is up, someone will inherit the remainder of those 10 years. This is on top of any survivor's pension.
2 - Additional Voluntary Contributions Beat Most other Savings: Through the scheme, you can invest in an AVC scheme, whereby the money agreed, comes off your salary before tax (which is then invested). When you retire you get that money back, as an additional lump sum, free of tax. This means you effectively make what would have been the tax on that income (as a one-off saving) on top of any return from its investment. If you are able to save, and earn enough to be paying income tax, it makes a great deal of sense to put a significant amount of money into AVCs, particularly as you approach retirement, where that one-off tax saving could easily outstrip a few years' interest on most other investments.This is particularly true in the current period where interest rates are so low. Check them out.