Pension Briefing

Read the annual member newsletter, which includes the Fund's most recent Summary Funding Statement.

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Money in retirement

Click on the buttons below to find out more about your retirement income – how it’s taxed and when it’s paid.


Pension increases

Some pensions in payment may receive annual increases, with various elements receiving different levels of increase, depending on the LSF Rules and pensions legislation in force at the time. However, some pensions in payment receive no annual increase.

Tax on your pension

LSF Pensions Administration deducts income tax directly from your monthly pension and pays it to HMRC. If you think you are paying the wrong amount of tax you need to contact HMRC direct, by getting in touch with the relevant tax office.

Death benefits

The death benefits paid from the Fund will depend on the benefit structure that was chosen by your employer. However, generally speaking, the following benefits are payable:

If you die after retirement, and within five years of your retirement date, a lump sum in respect of the balance of the five-year guarantee period would usually be payable. Your spouse and eligible children may also receive a pension. The lump sum is calculated using the difference between your pension and any contingent pension that might be payable. Any unpaid pension for the month of death would also be payable. This would be the only benefit payable upon the death of a pensioner who is in receipt of a spouse’s pension.

Any lump sums payable on death are paid to a beneficiary or beneficiaries chosen at the discretion of the Trustee and therefore do not form part of an individual’s estate for Inheritance Tax purposes. Although lump sums are payable at the Trustee’s discretion, the Trustee may take into account any wishes of the deceased, and therefore it is important to keep your Expression of Wishes Form up to date.

Pension payments

Except for those pensions paid to members of Sturge Holdings Plc (E) Staff Pension Scheme, whose pensions are paid monthly in advance, pensions are paid monthly in arrears, normally on the last working day of the month.

State pensions

Your LSF pension is paid on top of any State pension you may receive.

For anyone who reached State pension age before 6 April 2016, the State provides two kinds of pension:

  • The basic State pension (BSP)
    Often called the ‘old age’ pension, BSP is based on your National Insurance record during your working life and is increased by the Government each year, currently by the highest of inflation, earnings growth or 2.5%.
    This is the second tier of State pension provision and is based upon your additional full-rate National Insurance contributions. It is increased by the Government each year in line with inflation. You will be eligible for this unless you have been contracted out.

There is a new State pension in place for anyone who reaches State pension age on or after 6 April 2016. The new State pension replaces the two State pensions above. It is generally not less than £159.55 per week (in 2017/18) for a single pensioner – so it provides a significant increase on the current BSP (£122.30 per week in 2017/18). However, to receive the full amount you must have at least 35 years of National Insurance contributions (NICs) (whereas it is 30 years under the old system). Also, a minimum of 10 years of NICs is required to receive any pension. And, if you have been contracted out of S2P/SERPS, a deduction will be made to your State pension.

The new State pension will be an individual benefit, so spouses will not be able to inherit or derive rights to this State pension from their partner’s NICs record.

The new State pension is increased by the Government each year, currently by the highest of inflation, earnings growth or 2.5%

You can find out more about the new State pension at

Contracting out

Some schemes within the Fund were contracted out, which meant that members, and the employer, paid lower rates of National Insurance contributions; but contracted out members did not earn S2P/SERPS for the period during which they were contracted out. In return, the scheme would provide a minimum level of benefit that broadly corresponded to the State second pension (S2P/SERPS) given up. If you were a member of the LSF between 6 April 1978 and 5 April 1997 and you were in contracted-out employment, you will have built up entitlement to a Guaranteed Minimum Pension or GMP. Unlike the State pension, where pension age has been rising, GMP payment age has remained at age 60 for women or 65 for men.

Once your GMP comes into payment, the increases applied to that part of your pension may differ from the increases applied to the other parts of your pension.

More information about the new State pension can be found here:

News & updates

This is where you can find out about the latest changes to pensions legislation and LSF updates.
20 January 2020

Brexit – 31 January 2020

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23 August 2019

Can you spot a pension scam?

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19 July 2019

Lloyd’s Superannuation Fund Trustee’s Report and Accounts 2019 is online now

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