Retirement declaration form - a guide

Members who are about to take their LGPS pension must complete the retirement declaration form.

Why you need to complete the form

The purpose of the form is for you to provide us with your:

1. bank/building society details for payment
2. date of birth declaration with a copy of your birth certificate, valid photo driving licence or valid passport
3. partnership status declaration
4. decision if you choose to convert some of your annual pension to a lump sum
5. decision about your AVC fund if you have been paying into one
6. Lifetime Allowance or Lump Sum Allowances declaration.

How you get the form and return it

If you are a current scheme member, your employer sends the Retirement Declaration form with your retirement letter.  Complete the form and return it to your employer. If you do not know who your employer is, please ask your line manager.

If you are a deferred scheme member (stopped paying in and your pension is held in the fund), we send the Retirement Declaration form to you with a letter. Complete the form and return it to the Pension Section. The return address is on the letter.

If you are a pension credit scheme member (pension as part of a divorce settlement), we send the Retirement Declaration form to you. Complete the form and return it to the Pension Section. The return address is on the letter.

Completing the form

Please use black ink and complete all the sections in BLOCK CAPITALS. Please ensure that you sign the form twice in the 2 designated places.

Your personal details - Complete your personal details in the boxes provided.

Payment method - Complete your payment details in the boxes provided. Incorrect information could cause your payment to be delayed. Some useful points to note are:

• The bank account for payment must be an individual account in your name or a joint account on which you are named. You must complete the ‘Account Holder Name’ box. Please note that if you choose to have payments direct into an Individual Savings Account (ISA) they may be returned to us if the account limit is exceeded.
• You can find all your account details on your cheque book or bank statement. If you do not know your account details you need to ask your bank or building society.
• If your account number is less than 8 digits you need to add zeros at the beginning, e.g. an account number 12345 should be written as 00012345.
• If your account number is more than 8 digits you should contact your bank or building society to ensure payment is made correctly.
• If you want your payment made to a building society account you may need to complete the ‘Account Roll Number’ box in addition to the ‘Account No.’ box. If you are unsure whether your account requires a roll number, please check with your building society.
• If you want your payment made to a post office account you must check it accepts BACS (automated direct debits). Some types of post office accounts do not accept BACS payments.
• If you want your payment made to an overseas bank account you need to download an overseas mandate form

Date of Birth Declaration - Complete the box and ensure a copy of your birth certificate, valid photo driving licence or valid passport is enclosed.

Partnership Status Declaration - Tick the box which is relevant to your partnership status.

Election to convert pension to lump sum - You have the option to convert some of your annual pension to a lump sum payment. Information to help you with your decision is provided in your estimate. It shows standard benefits and maximum conversion benefits. Your standard benefits are your annual pension and lumps sum before any conversion. Your maximum conversion benefits show the maximum lump sum you can receive and the reduced annual pension.

Tick one of the 3 boxes:

1. Take standard benefits, or
2. Take maximum conversion of annual pension to lump sum, or
3. Take your own choice of conversion, above standard benefits but not exceeding the maximum conversion. Decide by choosing the amount of annual pension you are prepared to give up for a lump sum or the amount of lump sum you would like to create.

In House Additional Voluntary Contribution (AVC) Holders ONLY (except pension credit members) - Only members who paid AVCs need to complete this section. Information about your AVC is with your estimate which helps you to make decisions and complete this section. Tick one option only.

Sign and date the form in the designated place.

Completing the Lifetime Allowance Declaration

Note: You will have either the Lifetime Allowance Declaration or the Lump Sum Allowances Declaration on your form. Please check which declaration you are completing before reading these guidance notes.

The Lifetime Allowance was the total capital value of all your pension arrangements which you can build up without paying extra tax. The Lifetime Allowance was abolished from 6th April 2024 and replaced with 2 new allowances, the Lump Sum Allowance and the Lump Sum and Death Benefit Allowance. Find out about lump sum tax free allowances

This will be a relevant benefit crystallisation event. The amount of lump sum you take is tested against your available allowances.

HM Revenue & Customs (HMRC) legislation requires that we obtain a written declaration from you stating the details of any pension benefits already in payment, or due for payment, before the date your LGPS benefits are payable. We use a transitional allowance to compare the total benefits taken before 6 April 2024, and any actual tax free lump sum amounts paid since 6 April 2024, against the Lump Sum Allowance and Lump Sum Death Benefit Allowance. You must tell us about:

• Other pension benefits - these could include pensions in payment or tax free lump sums you have already taken
• LGPS benefits including any Kent Pension Fund benefits
• Sharing orders awarded as part of divorce proceedings which are already in payment, or due for payment before the date this LGPS benefit is payable.

Section 1 - Pensions that were already in payment before April 2006 -

• Give the pension provider’s name.
• State the current annual gross pension you receive.

If you do not have this information, you should contact your previous pension provider

Section 2 - Pensions that commenced payment and/or tax free lump sums* received on or after April 2006 and before 6 April 2024

• Give the pension provider’s name.
• State the percentage of the Lifetime Allowance which you should have been told at the time you drew the pension/took payment of the tax free lump sum.
• State if cash is protected under Primary Protection which you should have been told at the time you drew the pension.
• State the date the pension became payable.

If you do not have this information, you should contact your previous pension provider.

Tax free lump sums* received on or after 6 April 2024 and before the due date of these benefits

• Give the pension providers name.
• State the tax free amount of any lump sum payments you received. Please input this amount to the Tax free cash box even though it says to only input if you have primary protection.

We may need to contact you if the information is not clear

Section 3 - Pensions from other arrangements coming into payment on the same date as these benefits - Give the pension provider’s name.

Section 4 - Overseas Transfers Out on or after April 2006

• Give the pension provider’s name.
• State the date the pension was transferred.
• State the percentage of the Lifetime Allowance which you should have been told at the time you transferred the pension.

If you do not have this information you should contact your previous pension provider.

Section 5 - Benefits commuted to a one-off lump sum on or after April 2006 - Give the pension provider’s name

Sign and date the form in the designated place.

Please remember to sign the form twice in the designated places.

Completing the Lump Sum Allowances Declaration

Note: You will have either the Lifetime Allowance Declaration or the Lump Sum Allowances Declaration on your form. Please check which declaration you are completing before reading these guidance notes.

The Lump Sum Allowance and Lump Sum and Death Benefit Allowance are 2 allowances set by HM Revenue & Customs (HMRC). They limit the total value of tax free lump sums that can be paid to you from your pension arrangements. Find out about lump sum tax free allowances

This will be a relevant benefit crystallisation event. The amount of lump sum you take is tested against your available allowances.

HM Revenue & Customs (HMRC) legislation requires that we obtain a written declaration from you stating the details of any pension benefits already in payment, or due for payment, before the date your LGPS benefits are payable. We use a transitional allowance to compare the total benefits taken before 6 April 2024, and any actual tax free lump sum amounts paid since 6 April 2024, against the Lump Sum Allowance and Lump Sum Death Benefit Allowance. You must tell us about:

• Other pension benefits – these could include pensions in payment or tax free lump sums you have already taken.
• LGPS benefits including any Kent Pension Fund benefits.
• Sharing orders awarded as part of divorce proceedings which are already in payment, or due for payment before the date this LGPS benefit is payable.

Section 1 - Tax free lump sums* received on or after 6 April 2024 and before the due date of these benefits

• Give the pension providers name.
• State the tax free amount of any lump sum payments you received.

If you do not have this information, you should contact your previous pension provider.

Section 2 - Pensions that commenced payment and/or tax free lump sums* received on or after April 2006 and before 6 April 2024 the due date of these benefits

• Give the pension provider’s name.
• State the percentage of the Lifetime Allowance which you should have been told at the time you drew the pension/too payment of the tax free lump sum.
• State the date the pension/tax free lump sum became payable.

If you do not have this information, you should contact your previous pension provider.

Section 3 - Pensions that were already in payment before April 2006

• Give the pension providers name.
• State the current annual gross pension you receive.

If you do not have this information, you should contact your previous pension provider.

Sign and date the form in the designated place.

Please remember to sign the form twice in the designated places.

*Types of tax free lump sum payments you should declare

• Pension Commencement Lump Sums (PCLS) – these are tax-free lump sums you take when you start taking a pension.
• Uncrystallised Funds Pension Lump Sums (UFPLS) – this is a type of lump sum paid from a defined contribution scheme. Only tell us about the tax-free part of the lump sum in this section.
• Stand Alone Lump sum (SALs) – this is a special type of lump sum payable for certain members who had benefits in schemes at 5 April 2006.

If you are unsure whether you should declare any of your previous pensions/lump sums, please contact your previous provider.