Pensioners

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Select from the following links:

About Pension Increase
Death Benefits
Modification
Pension Increase
Pension Payments
Tax

Pension Payments
Once you have retired you will receive a notification which will show how your pension benefits have been calculated. Your pension is paid monthly in arrears, on the 15th of each month.

If the 15th is a Saturday or Sunday then the pension will be paid on the Friday. Pension payments can only be paid direct to your bank or building society account. Prior to the 15th of each month you will receive a payslip which will show the payment details and the net amount which will be credited to your bank or building society account.

A Bank Mandate form is available to download (.pdf file 15 Kb).

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Death Benefits
As well as providing a retirement pension for you, the scheme also provides benefits for your husband or wife and any dependent children in the event of your death. The benefits provided include a lump sum death gratuity, short term pensions payable at a higher rate for a period following the death of the scheme member and then long-term pensions.

Lump Sum Death Gratuity
If you die within five years of retiring, the balance of five years pension will be paid to the person nominated by you to receive payment.

Example:
If your annual pension is £6000 and you die two years after retirement, a lump sum death gratuity equal to three years pension would be payable - £18,000 plus pensions increase.

Short Term Pension
If you die after you retire, for the first three months your husband or wife will receive a pension at the same rate as your retirement pension. If you have any dependent children this period will be increased to six months.

Long Term Widow's Pension
Following the short-term pension your wife will be entitled to a pension based on one half the pension to which you were entitled.

Long Term Widower's Pension
Following the short-term pension your husband will be entitled to a pension based on one half the pension that would have accrued in respect of any membership from 1 April 1972.

Pension for your Widow/Widower if you married after retirement
If you married or remarried after you retired, the widow's or widower's pension will be based on one half the pension which would have accrued from 6 April 1978 for widows and 6 April 1988 for widowers.

Child's Pension
For the purposes of the pension scheme, a child is someone who, at the time of your death is:

A pension will be paid for as long as the child continues to meet the above conditions. The rate of pension depends on how many children you have and whether your husband or wife is receiving a long-term pension.

The pensions payable will be as detailed below, subject however to a minimum being the lesser of:

Child's Short Term Pension
A short-term pension is based on your annual rate of pension, but will only be paid if there is no short-term pension being paid to your widow or widower.

Child's Long Term Pension
If you have one child and your widow or widower is receiving a pension, a child's pension of 1/4 of your pension will be paid. If you have two or more children and your widow or widower is receiving a pension, the children's pension will be 1/2 of your pension, split equally between the children.

If you have one child and no widows or widowers pension is payable, a child's pension of 1/3 of your pension will be paid. If you have two or more children and no widows or widowers pension is payable, the children's pension will be 2/3 of your pension, split equally between the children.

Modification

HISTORY
6 July 1948 - The Government introduced compulsory flat rate modification as it was concerned with over provision for retirement. All new contributors to the Local Government Superannuation Scheme had their contributions reduced by 6 pence per week. A corresponding reduction of £1.70 per year for all modified service was made at state pension age to their Local Government Pension.

Employees prior to 6 July 1948 remained unmodified unless they elected to the contrary.

1 April 1980 - All superannuation contributions and service became unmodified. The amount of money involved had made the modification arrangements meaningless. Pre 1 April 1980 service was still treated as modified with the appropriate reduction being made at state pension age.

CURRENT POSITION
1 April 1998 - The Local Government Pension Scheme (Scotland) Regulations 1998 scrapped modification all together for those who left on or after 1 April 1998. As a result those with pre 1 April 1980 membership who left after 1 April 1998 do not have their pensions modified at state pension age.

Pensions Increase
In order to ensure that your pension keeps pace with the cost of living, your pension is increased annually from the first Monday after the 6th of April. The rate of increase is set by the Government and is based on the rise in the retail price index for the year to the previous September.

If you retire on redundancy or efficiency grounds prior to age 55, you will not be entitled to an increase. Once you attain age 55 however, your pension will be increased by the total of all increases granted since your retirement.

When you reach state pension age the responsibility for pension increases will be split between the DWP and pension scheme. The DWP will pay the relevant increase on the Guaranteed Minimum Pension (GMP) along with your Basic State Pension. Increases on the balance will be paid by the scheme along with your Local Government pension.

The lump sum Retiring Allowance is free from tax deduction but all pension payments are subject to tax. Aberdeen City Council will deduct tax in accordance with your tax code, issued by H.M. Inspector of Taxes.

When you retire your employer should give you Part 1A of your P45. Parts 2 and 3 should be passed to the Pensions Section and tax will be deducted in accordance with the tax code number on the P45 but on a month 1 basis. A month 1 basis means that tax is assessed on your monthly income with no refund of tax permitted. The Pensions Section will notify the Tax Office of your retiral by sending Part 3 of the P45. The Tax Office will then issue an amended tax code and any tax refund due will then be made.

A form P60 will be sent to you in April each year which will show the amount of pension and tax deducted during the income tax year.

It is up to you to ensure that the tax code being operated against your pension is correct. If not, any query on the tax coding should be sent, quoting National Insurance Number, to: