Frequently Asked Questions - Active Members
Q: When can I retire?
A: The normal retirement age for the LGPS is 65. This is the age at which benefits can be paid without any reduction. If you draw them after age 65, those benefits earned before this age will be increased in line with guidance issued by the Government Actuary. Under tax rules, benefits must be paid before age 75.
You can request earlier payment - from age 55. But if you are below age 60, you will need your employer's consent. Benefits paid before age 65 may be reduced (some longer-serving members have protection against this reduction).
The LGPS contains special provisions for early retirement without reduction on grounds of ill-health or redundancy/efficiency and for flexible retirement (drawing your benefits while still employed).
A: The benefits you will receive will depend on the date you commenced paying into the Local Government Pension Scheme (LGPS).
- If you commenced before 1st April 2008 you will receive:
- a pension
- a tax free lump sum.
- If you commenced after 31st March 2008 there is no automatic lump sum. You will receive:
- a pension and the option to convert part of your pension for a tax free lump sum.
Regardless of your date of commencement in the LGPS, you will receive from the Department of Work and Pensions (DWP) the basic flat rate state pension (at state pension age) provided you have paid sufficient National Insurance contributions during your working life.
A forecast of your state pension benefits is available from The Pensions Service, please see our "Other Useful Sites" page.
A: Your pension is based on your total membership and the best one of your last three years' pay (the whole time equivalent pay is used if you are part time).
If your pay has been downgraded after 31/03/2008 (other than as a result of flexible retirement) you can choose to have your benefits calculated on the average of the best three consecutive years' pay in the last ten years of service (ending on a 31st March)
If your pay is reduced because of sickness, the final year's pensionable pay is taken to be the pay that you would have received had you not been sick.
A: On retirement you will be given the opportunity to exchange some of your pension to receive a tax free lump sum.
You will be able to take up to a maximum of 25% of the capital value of your pension benefits as a tax free lump sum or, if lower, 25% of the lifetime allowance set by HM Revenue and Customs (HMRC) less an adjustment for the value of any other pension benefits you are already drawing.
For each £1.00 of annual pension exchanged you will receive £12.00 of lump sum
You may not reduce your pension below your Guaranteed Minimum Pension (GMP). This is the minimum legal pension we must pay you, and a notification of this amount will be sent to you from HMRC prior to state pension age.
Last Modified:
13/11/2009 16:38:19
Back to top