Employer training workshop estimates, early leavers and retirements


What are the responsibilities of the employer?

  • Determine type of estimate
  • Provide the relevant information
  • How it should be provided
  • Understand these timescales
  • Instruct us where / when the members pension figures should be sent

What are the expectations of the member?

  • What do you promise them?
  • Are members aware of what they can obtain themselves and which can only be requested by the employer
  • MPP - do you use the promotional material produced by the fund to make them aware of this facility? 

Types of estimates

Redundancy / business efficiency

  • Strain (cost to employer)
  • Over 55 pension figures to member on your request
  • No deferred figures issued to under 55s
  • Timescales - plan ahead

Flexible retirement

  • Employer policy required
  • Strain (waive not waive) - could still be a cost to the employer! 
  • Paperwork to process case
  • Figures to be issued to a member, following clear steer from employer
  • Timescales - plan ahead

Ill health

  • Strain
  • Death in service
  • Permanent ill health award

Age retirements

Early leavers

What are the responsibilities of the employer?

  • Determine the reason for leaving
  • Provide the relevant information in the correct format
  • Ensure forms are submitted in a timely manner

Types of early leavers

Opt out

  • Under and over 3 months

Voluntary resignation

  • Under 60 - deferred benefit awarded if greater than 2 years service
  • If want to claim pension (55-60) need to let the fund know as three months notice is required
  • Over 60- will discuss under retirements

Redundancy / business efficiency

  • Under 55 - deferred benefit awarded if greater than 2 years service
  • Over 55 - will discuss under retirements


  • Need to make it clear on the leaver form that it is Tupe
  • Make fund aware as soon as possible

Dismissal / capability

  • Right of appeal is included within decision letter
  • IDRP - can appeal decision (employer) or challenge calculation process (fund)


Types of retirement

Redundancy / business efficiency

  • Strain (cost to employer)
  • Over 55 pension payable immediately unreduced

Flexible retirement

  • Employer policy required
    • Over 55 and reduction in hours / grade
  • Separate form - PENFR1
  • Strain (waive not waive)
  • Estimates been provided

Ill health

  • Level of tier awarded - on LV1
  • Copy of LGPS medical certificates
    • IRMP short report
    • Dismissal letter

Age retirements

  • Over 60 - pension options will be sent
  • 55-60 - deferred pension will be calculated unless employer or member states otherwise
  • Late retirement - Over SPA
  • Upper limit is age 75 (will need to be opted out)

Process and timescales

What do you need to provide to the fund?

  • Leaver forms to be priovided in all cases
  • Termination details to include: 
    • Date
    • Reason for leaving
    • Pay (please note - we may need 13 years worth of final salary)

Actual retirement process

2 Stage process

Stage 1 - communication quotations

  • Disclosure requirement
    • 2 months if leaving under SPA
    • 1 month if at or over SPA
    • Breach is responsible to regulator if not met 
  • Service standards
    • 15 working days from receipt of the leaver form

Stage 2 - actual payment

  • Service standard member to receive payment of any lump sum retirement grant within 13 working days of us receiving all information / documentation
  • Pension will be paid (with arrears) at the end of the next pay period

Exit payment cap update

  • Exit payment cap paused – 12 Feb 2021
  • MHCLG wrote to Chief Finance Officers in May 2021 requesting historical exit payments data (back to 2014/15)
  • Deadline to submit response in 30/06/2021
  • The data will be used to inform delivery of the Government’s policy to end excessively high exit payments in the public sector.
  • No changes to pensions or compensation regulations without a further consultation exercise

Downloadable version

A downloadable version of the above information is available: