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WHEN CAN I RETIRE FROM THE NEW SCHEME?
When you retire, you can look forward to receiving a pension that increases every year in line with the cost of living, for the rest of your life.
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Before 1 April 2010, there is scope to retire and draw your benefits from as young as age 50 right up to age 65 and even beyond. In cases of ill health, there is no age limit at all.
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There is one important condition to draw your benefits before age 65 you must have at least 3 months membership or have brought in a transfer from another pension scheme.
Can I retire early?
If you have at least three months total membership or have brought a transfer value into the LGPS you can elect, in writing to your employer, to retire and receive your LGPS benefits at any time from age 60 onwards.
Before 1 April 2010, if you joined the LGPS before 1 April 2008, you may be able retire and receive your LGPS benefits between and including the ages of 50 and 59, but only if your employer gives their consent. This is an employer discretion and they should have a written policy in place.
From 1 April 2010, you may be able retire and receive your LGPS benefits between and including the ages of 55 and 59, but only if your employer gives their consent. This is an employer discretion and they should have a written policy in place.
Will my benefits be reduced if I retire early?
If you retire before age 65, your benefits may be reduced. The reduction is calculated in accordance with guidance issued by the Government Actuary from time to time. As a guide, the percentage reductions for early retirement are shown in the table below. Where the number of years is not exact, the reduction percentages are adjusted accordingly.
However, if you joined the LGPS before 1 October 2006 and would have at least 21 years scheme membership if you stayed in the scheme to age 65 you will:
- have some protection from the reduction in respect of benefits you build up in the Scheme up to 31 March 2016 if you will be 60 by then, or
- in any other case, have some protection from the reduction in respect of benefits you build up in the Scheme up to 31 March 2008 (and, if you will be 60 between
1 April 2016 and 31 March 2020, you may have some further protection on a sliding scale in respect of benefits you build up between 1 April 2008 and 31 March 2020 provided your combined age and scheme membership, both in whole years, would be 85 or more by 31 March 2020).
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No. of Years paid Early
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Pensions Reduction Men
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Pensions Reduction Women
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Lump Sum Reduction
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0
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0%
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0%
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0%
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1
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6%
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5%
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2%
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2
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11%
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10%
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5%
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3
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16%
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15%
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7%
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4
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20%
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19%
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9%
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5
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24%
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23%
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12%
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6
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28%
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27%
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14%
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7
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32%
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30%
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16%
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8
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35%
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33%
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18%
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9
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38%
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36%
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20%
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10
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41%
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39%
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22%
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11
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44%
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42%
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24%
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12
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47%
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45%
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26%
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13
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50%
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47%
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27%
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14
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52%
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49%
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29%
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15
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54%
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51%
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31%
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If you voluntarily retire before age 65, you do not have to receive immediate payment of your benefits and can defer them within the LGPS for payment before age 75.
