LGPS retirement options
The LGPS changed from final salary to career average on 1 April 2014. From 1 April 2014, the benefits you build up in the LGPS are payable in full from your Normal Pension Age (NPA).
NPA in the LGPS is linked to your state pension age, however, you can choose to retire and draw your pension at any time from age 55 to 75. Protection is in place if you built up benefits in the final salary scheme before April 2014 which means that NPA for pre April 2014 benefits is protected and remains for the majority of members, age 65.
Some or all of your pension will normally be reduced if you choose to retire before your NPA and increased if you retire later. The earlier you retire, the greater the reduction to your pension will be.
| Number of years early |
Pension reduction
Men
|
Pension reduction
Women
|
Lump Sum
(for membership up to 31/03/2008)
|
| 1 |
5.6% |
5.2% |
2.9% |
| 2 |
10.8% |
10.1% |
5.7% |
| 3 |
15.5% |
14.6% |
8.5% |
| 4 |
20% |
18.8% |
11.2% |
| 5 |
24% |
22.7% |
13.7% |
| 6 |
27.8% |
26.4% |
16.3% |
| 7 |
31.4% |
29.8% |
18.7% |
| 8 |
34.7% |
33% |
21.1% |
| 9 |
37.7% |
36.1% |
23.4% |
| 10 |
40.6% |
38.9% |
25.6% |
| 11 |
44.2% |
42.2% |
N/A |
| 12 |
47.6% |
45.5% |
N/A |
| 13 |
50.9% |
48.6% |
N/A |
Note: If you were a member of the LGPS between 1 April 1998 and 30 September 2006, were age 60 or over on 31 March 2016 and satisfy the 85 year rule (your age and calendar length membership equals 85 or more) you may be entitled to further transitional protection.
| Age 60 or over on 31 March 2016 and retire before NPA |
If you satisfy the 85 year rule before you retire, benefits accrued up to 31 March 2016 will not be reduced |
| Under age 60 on 31 March 2016 and retire before NPA |
If you satisfy the 85 year rule when you retire, benefits accrued up to 31 March 2008 will not be reduced |
| Age 60 between 1 April 2016 and 31 March 2016 and meet the 85 year rule by 31 March 2020 |
Some or all of the benefits accrued between 1 April 2008 and 31 March 2020, will not be reduced |
LGPS Flexible retirement options
From age 55 you can ask for flexible retirement. You must reduce your working hours by at least 20% or be paid a lower grade to be eligible. If your flexible retirement is agreed, you will have to decide how you wish to draw your pension. You must draw all benefits accrued before 1 April 2008, added years if your contract commenced prior to 1 October 2006 and additional voluntary contributions (AVC’s) that commenced before 13 November 2001. You can choose whether or not to draw:
All, none or some of benefits accrued from 1 April 2008 to 31 March 2014.
All, none or some of benefits accrued after 1 April 2014.
All, none, or some of benefits purchased either through additional pension contributions (APC’s), additional regular contributions (ARC’s) or AVC’s.
If you are retiring under flexible retirement, before normal pension age, the reductions above still apply.
Link to Flexible retirement options for members of the Local Government Pension Scheme (LGPS)