What is a deferred benefit?

If you joined the Local Government Pension Scheme (LGPS), then you left the Scheme and decided to leave your pension benefits with the Cardiff and Vale of Glamorgan Pension Fund – you will have what is known as a Deferred Benefit. A deferred benefit is a pension benefit that is held within the LGPS until it becomes payable or you request to transfer it out of the Fund.

Your deferred benefit increases every year in line with the Consumer Price Index (CPI) until you take payment of your pension, which means your pension keeps pace with inflation. When you retire your pension continues to receive an annual increase every April in line with CPI.