This page contains the most frequently asked questions we receive from our Local Government Pension Scheme (LGPS) members about their pension with Derbyshire Pension Fund.
We aim to give you the answers to these questions on this page and through links to our other webpages. If you’re still unsure after going through the answers, please contact us.
Quick links
Retirement
Annual benefit statement
Understanding your pension
Transfers
Retirement
There's a lot to consider when you're thinking of retiring. If these FAQs don't answer your question, you can find more information in the retirement section.
When can I retire and take payment of my pension?
You can find more information on our when you can take your pension page.
If you leave employment between age 55 and 75, we’ll write to you with your retirement options. Please note the Normal Minimum Pension Age (NMPA) is due to increase from age 55 to 57 in April 2028.
Your pension will be reduced if you choose to take payment earlier than your State Pension age. This is because we’ll pay you for a longer period of time.
We may be able to pay your pension at any age if you meet the ill health criteria.
I am 55 or over. How long after I leave my job will I get my pension?
You can visit the steps to receiving your pension benefits page of our website for more details on our retirement process.
Please note the Normal Minimum Pension Age (NMPA) is due to increase from age 55 to 57 in April 2028.
When you've set your retirement date, your employer will let us know. If you receive the same pay each month, your employer can sometimes tell us up to 4 weeks before you retire. If you receive variable pay however, your employer will let us know after your final pay has been processed.
We often don't find out that you have retired until some time after your retirement date, which can cause delays in the payment of your pension benefits. It's a good idea to plan for the possible late payment of your pension by making alternative plans for your finances in the weeks immediately after your retirement.
Once we have been informed of your leaving date and have the information which we need, we will write to you with your pension options as soon as possible. This will include information about the minimum and maximum lump sum available to you and give you the opportunity to let us know at this stage which option you would like to take. The sooner you return any information and forms to us, the sooner we can pay or defer your pension benefits in line with your wishes
Can I take some or all of my pension as a lump sum?
Most of our members can choose to convert 25% of their pension to a tax-free cash lump sum.
You can use the ‘Voluntary retirement calculator’ on My Pension Online to find out the value of your lump sum at different retirement dates. If you’ve already registered for your account, go to your ‘Dashboard’, then:
Benefit calculators >> Voluntary retirement calculator
You can also visit our lump sums and tax page.
Annual benefit statement
We produce annual benefit statements for our active and deferred members. These statements give you an estimate of your pension benefits built up in your pension account up until the last 31 March.
Where is my annual benefit statement?
We issue annual benefit statements online to our secure member self-service portal My Pension Online.
We’ll load a copy of your annual benefit statement onto your My Pension Online account as soon as it’s ready.
If you’ve already registered for your account, go to your ‘Dashboard’, then:
Documents and uploads >> My documents
If your annual benefit statement isn’t available on your account, there could be many reasons why your annual pension statement isn’t ready yet.
If you’re currently paying in, please go to our active member annual benefit statement page.
If you’re no longer paying in, please go to our deferred member annual benefit statement page.
We also stopped sending hardcopies in the post when My Pension Online launched. Please contact us if you’d prefer to receive a printed copy to your home address in the future.
Why isn't the service shown on my statement the same as my actual service?
The service shown on your statement won’t match your actual service in your post if you’ve been part time at any point before 1 April 2014.
We reduce the service recorded on your record to reflect your part time service. We still use your full-time equivalent pay when working out the final salary part of your pension. For example, if you worked half time for 10 years, this will be recorded as 5 years’ service.
If you’ve taken part in any industrial action, these days don’t usually count as pensionable service either.
Why are my figures lower on my latest statement compared to last year?
This is likely to be because your employer has provided some revised pay information. If this has happened, the final salary part of your pension may have been affected. You may need to query this with your employer if you think this is wrong.
What if I don't understand some of the details on my statement?
You can contact us if there’s anything about the statement you don’t understand, and a member of our team will be happy to help.
If you’re currently paying in, you can visit our active member annual benefit statement page.
If you’re no longer paying in, you can visit our deferred member annual benefit statement page.
Understanding your pension
Understanding your pension can sometimes be quite complicated. If these FAQs don't answer your question, you can find more information in the understanding your pension section.
How do I find out how much my employer is paying into my pension?
You can access your annual benefit statements via your My Pension Online account and visit our how your pension is worked out webpage for more information.
The LGPS is a defined benefit scheme and is different to a personal pension.
Your employer’s contribution rate is worked out by our Fund’s actuary based on investment growth and the profile of their employees’ membership. This value represents the amount of money needed to make sure there are enough funds available to cover their employees’ future retirements.
Rather than their contribution and your contribution going into your pension 'pot', your pension is calculated based on your membership and pay.
All the employers’ contributions rates are detailed in the latest actuarial valuation report.
How do my other pensions affect my LGPS pension?
There are tax controls in place that mean we may need to ask you about any other pensions that you have.
For further information go to our annual allowance and lifetime allowance pages.
How do I find out how much is in my “pension pot”?
Derbyshire Pension Fund is a defined benefit (DB) scheme, not to be confused with a defined contribution (DC) scheme.
The annual pension amount you can see on My Pension Online is not a ‘pot amount’ or transfer value. There is further information available detailing how your pension is worked out, including a helpful video.
Your annual benefit statements can be found within the “Documents and Uploads” section of My Pension Online, which contain some additional details to help you understand your LGPS pension.
There is not a ‘pot’ available for you to view, due to us being a defined benefit scheme, however, if you require a cash equivalent transfer value (CETV), you can refer to our dedicated webpages to find out how to request these:
What is a Defined Benefit (DB) scheme?
Our fund is part of the Local Government Pension Scheme (LGPS), which is a defined benefit scheme.
The LGPS is one of the largest pension schemes in the UK. It is a DB pension scheme which means your pension is based on your salary and how long you pay into the Scheme. Your pension is not affected by how well investments perform. The LGPS provides you with a secure and guaranteed income every year when you retire.
What is a Defined Contribution (DC) scheme?
The LGPS is not a DC scheme. More information on the differences to a DB scheme is covered in the next question.
What is the difference between DB and DC schemes?
DB pension schemes pay a guaranteed income for life when you retire, calculated based on your salary and service. The LGPS is a DB scheme.
DC schemes are sometimes also referred to as ‘money purchase pension schemes'. The individual and their employer pay straight into personal 'pension pot'. The money paid in, is then invested in stocks, shares and bonds. The value of your pension pot can go up or down depending on how the investments perform. The LGPS is not a DC scheme.
GOV.UK also explains the difference between these types of schemes.
How can I increase my pension benefits?
Topping up your main pension is a great way to save for your future retirement.
You can find more information about the options available, on our increasing your benefits page.
What is the Rule of 85?
The Rule of 85 is a protection for members who joined the LGPS before 1 October 2006. If you meet the rule of 85, your service before 1 April 2008 may be protected from reductions if you retire early.
If you qualify for the rule of 85, we’ll automatically apply the protection when you retire.
To find out more, you can visit our rule of 85 page.
How much will my pension be if I defer my benefits?
You can use the ‘Deferred pension payment’ calculator on My Pension Online. If you’ve already registered for your account, go to your ‘Dashboard’, then:
Benefit calculators >> Deferred pension payment
What gets paid out when I die?
It depends on whether you are paying into our Fund, have deferred benefits or are in payment of your pension benefits when you die.
You can find out more information about death benefits on this website depending on your member status:
You can nominate who you would like to receive any lump sum payable from our Fund in the event of your death by completing an expression of wish form. You can find this on our forms and guides page.
Transfers
How do I transfer in another pension?
We have a dedicated webpage regarding transferring in previous pension rights, including where you can transfer in from and how to apply for a transfer in.
How do I transfer out to another pension provider?
You can find out more information on our transfers out page.
What is a Cash Equivalent Transfer Value (CETV)?
A cash equivalent transfer value or CETV represents the value of your pension to be used for the purposes of transferring to another pension provider, or for divorce purposes.
How do I request a CETV?
If you are considering the possibility of transferring out to another scheme, you should speak with the new scheme directly to see if the transfer is possible, before requesting a CETV.
Some schemes might contact us directly. If your new pension provider does not communicate with us directly, then you (the member) need to request the CETV. The request must be in writing (email, letter or enquiry form). We cannot take CETV requests over the phone.
You are only to request one transfer value for free within a 12-month period. Any additional requests will incur a charge.
You can find more information on out transferring out page.
If you require a CETV for matrimonial proceedings, you can find more information on our pensions and divorce or dissolution of a civil partnership page.
Can I combine my Derbyshire pension records together?
If you have left one employment and started a new one, it may be possible to combine (aggregate) your pension records together. In this case, we will contact you to confirm your options.
If you are still contributing on 2 active records, these cannot be combined (aggregated) until you leave one of the posts.