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LEFT THE SCHEME BEFORE 1 APRIL 2008

 
From when can I receive my deferred benefits if I left the Scheme before 1 April 2008?
 
You can elect, in writing to the Fund, to receive your LGPS benefits at any time from age 60 onwards, subject to reduction before age 65. You may be able however, to receive your LGPS benefits before age 60, if your former employer gives their consent, depending on when your membership of the Scheme commenced (see table below).
 
Please note that from 6 April 2010, if you are able to request payment of your benefits before age 55 and your former employer consents, these benefits will incur a tax charge. This meets the provisions of the 2004 Finance Act.
 
In cases of ill health there is no age limit for the early release of benefits and the benefits paid will not be reduced or incur a tax charge.

  
Membership Commenced Membership Ceased Earliest Payable Age
 Before 6 April 2006  Before 1 April 2008   50
Before 6 April 2006 After 31 March 2008  50 (until 31 March 2010 then 55)
After 5 April 2006  Before 1 April 2008   50 (until 31 March 2010 then 55)

 
You can find out more about when you can receive your benefits:
 
 
How will my benefits be calculated?
 
The two main factors used to calculate your retirement pension are:
 
 
Can I exchange some of my pension to give myself either a tax-free lump sum or more tax-free lump sum?
 
Yes. You can exchange part of your annual pension to take a tax-free lump sum if you joined the Scheme after 1 April 2008, or additional tax-free lump sum if you joined before 1 April 2008. In both cases, you can take up to 25% of the capital value of your LGPS benefits as a lump sum.
 
Every £1 of annual pension that you give up you will receive an extra £12 lump sum. In the same way, giving up £100 of your annual pension would give you an extra £1,200 lump sum.
 
An option to take a lump sum has to be made in writing before your benefits are paid. So that you have plenty of time to make up your mind and seek financial advice if you wish, it is important you contact your former employer well in advance of your intended retirement date so that you can be provided with an estimate of these amounts.