A pension credit member is someone who has become a member of the Local Government Pension Scheme (LGPS) after a Pension Sharing Order has granted them a share of their former spouse or civil partner’s pension.

When a Pension Sharing Order is in place, you can choose to have an LGPS pension in your own right or transfer your share to another pension scheme.

To help you make this choice, we’ll write to you with details of the pension benefits we’ll provide and the cash equivalent transfer value (CETV) of your share if you choose to transfer to another pension scheme.

If you’re unable to decide by our deadline, we’ll award you with pension benefits automatically.

About an LGPS pension credit

When you're awarded a pension credit in the LGPS, you’ll be entitled to an annual pension which:

  • is normally payable from your State Pension age, and the payable date can be found on your annual benefit statement
  • can be paid earlier at a reduced level
  • is increased in line with the cost of living
  • is payable for life

Death and pension credits

When you die determines the amount of lump sum death grant due:

If you die before receiving payment of your pension benefits

We’ll pay 3 years’ worth annual pension (increased in line with inflation). 

If you die within 5 years of receiving payment of your pension benefits

We’ll pay 5 years’ worth of annual pension minus any pension already paid.

There’s no provision for a survivor's pension and any eligible children's pensions remain attached to your ex-spouse's benefits in the LGPS. 

Transferring to another pension scheme

As an alternative to a pension credit in the LGPS, you are entitled at any time up to one year before your normal pension age to transfer the cash equivalent value of your pension credit to another qualifying pension scheme. If you wish to investigate a transfer to another scheme, please contact us.

You may need to take independent financial advice before you can complete a transfer. If we think you are at risk of being scammed, we may require you to attend a guidance appointment with MoneyHelper. Pension scams are on the rise in the UK. Falling victim to a pension scam could mean that you lose some or all your pension savings. Please visit our how to identify a pension scam page for more information for tips on how to protect yourself.

Further information

If either you or your ex-spouse remarry, your pension benefits will be unaffected. 

Your pension credit could be subject to a pension share if you remarry, and that marriage ends by divorce or annulment.