Introduction to Local Government Pension Scheme (LGPS)

Personal pensions

You can get a personal pension through an insurance company, bank, building society, unit trust or friendly society.

We invest your paid contributions to build a cash fund for retirement. This fund buys an annuity to provide your pension.

At retirement, you can take up to 25% of the fund as a tax-free lump sum. You can begin to take your benefits at any time from the age of 55.

You do not need to transfer your pension if you move to a new job outside local government. But you should remember that a personal pension:

• depends on investment performance
• depends on the state of the stock market when you retire
• could decrease if you want family benefits or limited index linking

You will get tax relief on the payments you make. Employers do not usually contribute to individual retirement plans.

Commission and admin charges will reduce the amount invested to provide your pension. These costs vary but can be considerable.

Contributions vary according to the level of retirement benefits wanted. Lower contributions mean lower retirement benefits. So, you must know the retirement benefit level you want. Personal pension providers will give you projected estimates.

State Pension

The new State Pension is paid to everybody at State Pension age. This is rising on a phased basis to 68 for both men and women. The amount you get depends on how much National Insurance you've paid.

Contact Southwark Pensions

You can contact us by:

• calling 020 7525 4924
• emailing lbspensions@southwark.gov.uk
• writing to 2nd Floor, Hub 1, PO Box 64529, London, SE1P 5LX