Pension credit members
A pension credit member is an ex-spouse or civil partner who has become a member of the LGPS through a pensions sharing order which has granted them a share of their former spouse or civil partners pension benefits.
As a pension credit member you will have been awarded an annual pension in your own right, and may be entitled to receive a lump sum as long as your ex-spouse or ex-civil partner had not already retired and received a lump sum when the order was issued.
After the pension sharing order has been made, a statement with details of the value of the pension credit will be provided. You will also receive an annual benefit statement showing how your benefits are rising in line with inflation.
When can I take my pension credit benefits?
Pension credits awarded pre-April 2014: Benefits are usually paid from age 65 or later if the pension sharing order was issued after then. Benefits can be taken on or after age 60 and before 65 with a reduction for early payment.
Pension credits awarded post-April 2014: Benefits are due at normal pension age which is the same as state pension age. However, benefits can be taken anytime from age 55 with a reduction for early payment. They can also be deferred until 75 with an increase for late payment.
If I remarry will my benefits stop?
Pension credit benefits are separate from those of your former partner. This means the benefits don't stop if you remarry or re-enter a civil partnership. However, if a new marriage/civil partnership were to end in divorce, dissolution or annulment, your pension credit benefits could be subject to a pension sharing order.
Pension credit benefits don't give survivors' pensions.
Can I transfer my pension credit benefits?
You can transfer the value of your pension credit benefits to another qualifying pension scheme, up until a year before you reach normal pension age. Although, it's not possible to combine your pension credit benefits with any benefits you may hold in the LGPS in your own right as a scheme member.
You also can't buy additional benefits in the LGPS either through AVC’s or APC’s.
What happens to my pension credit benefits if I die before taking them?
If die before taking your pension credit benefits, a death grant is due. You can nominate who you wish to get the death grant. But, payment is at the discretion of the fund.
The death grant due is equal to three times the rate of the annual pension that would have been due at the date of death.