If you stop being a councillor contributing to the LGPS, the options available to you will depend on how much membership you have and what you would like to do with your pension benefits.
Select the relevant heading below to see which options may be available to you.
Less than 3 months' membership
If you have less than 3 complete months of membership, you can:
- Take a refund of your contributions (subject to a tax deduction).
- Delay making a decision until you rejoin the same LGPS fund as a councillor, wish to take a refund, or transfer to another pension scheme.
The option to transfer to a different pension scheme will only be available for a limited period.
3 months or more membership
If you have at least 3 complete months of membership, you can:
- Leave your benefits in the LGPS
Your pension and lump sum will be calculated using your membership up to the date you left the scheme. These are known as deferred benefits. - Transfer your benefits
You can transfer the value of your benefits to a new pension scheme, personal pension scheme or stakeholder pension scheme. - Transfer to a qualifying overseas pension scheme
In certain circumstances, a transfer may be made to an overseas pension scheme or arrangement that meets HM Revenue & Customs requirements.
Important: You cannot transfer your benefits to another LGPS fund in England or Wales unless you are an active councillor member within the same LGPS administering authority.
2 years or more membership
If you choose not to transfer your benefits, they will become deferred benefits.
Gwynedd Pension Fund will calculate the value of your benefits when you leave the scheme and hold them on your behalf until you choose to transfer or take them.
Your deferred benefits will normally become payable at age 65, but you can choose to take them earlier or later.
Taking deferred benefits early
You can choose to take your deferred benefits from age 55 onwards. You do not need your former Council's consent to do so.
However, your benefits will normally be reduced because they are being paid for a longer period.
If you contributed to the scheme before 30 September 2006 and are a protected member, some or all of your benefits may be protected from this reduction.
If you choose to take your pension between ages 55 and 60, this protection will not automatically apply. Your former Council may decide to allow the protection, but this is a matter of local discretion.
Important: The earliest age at which you can take your pension will increase from age 55 to age 57 from 6 April 2028. This does not apply if you are required to take your pension early because of ill health.
Transfer Out
You can only transfer your pension benefits to another pension scheme if you have stopped paying contributions to Gwynedd Pension Fund.
The most common types of transfer out are:
- Another occupational pension scheme.
- A personal pension scheme.
- A stakeholder pension scheme.
Important: You cannot transfer your LGPS Councillor pension to another LGPS Fund in England or Wales.
If you wish to transfer your benefits, you must do so at least 12 months before your Normal Pension Age.
What is the Process?
Check that your new pension scheme accepts transfers.
Gwynedd Pension Fund will calculate and send you a transfer quotation.
Compare the value of your LGPS benefits with those offered by the new scheme.
Consider your options carefully and seek financial advice if necessary.
If you decide to proceed, the transfer will be completed in accordance with scheme rules.
Transfer Quotation
The transfer quotation provided by Gwynedd Pension Fund will be valid for three months.
Requesting a transfer quotation does not mean that you must proceed with the transfer.
Financial Advice
You should ensure that you have all relevant information about both pension schemes before making a decision.
When comparing benefits, remember that LGPS Councillor benefits increase in line with the cost of living.
Important: If your transfer value exceeds £30,000, the law requires you to obtain independent financial advice before transferring to a scheme offering flexible benefits.
If your transfer value exceeds £30,000, your pension administrator will require evidence that you have received appropriate independent financial advice.
Although not legally required for transfer values of £30,000 or less, you may still wish to seek financial advice.
Important note: If a full transfer is completed, neither you nor your spouse, civil partner or eligible children will have any further entitlement to benefits from the LGPS.
Protect yourself from pension scams
Pension scams can be difficult to identify. Additional information or guidance from MoneyHelper may be required before a transfer can proceed.
Preventing Pension Scams
- Reject unexpected offers.
- Check who you are dealing with.
- Do not be rushed.
- Seek impartial advice.
If you suspect a scam: Report it to the FCA as soon as possible.