Deferred Benefits

If you have at least 3 months LGPS membership, your accrued benefits i.e. your pension and lump sum, will be calculated using your total membership up to the date you left the Scheme. This is known as a Deferred Benefit.

Deferred benefits become payable at age 65 (unless you opt to defer payment beyond that age), but may be put into payment at any age earlier than 65 in the event of ill health, without reduction.

You can also elect to receive your benefits early, on or after age 50 and before age 60 with your Council’s consent, or at or after age 60, without your Council’s consent. Your benefits will be reduced if paid before age 65 to take account of early payment (unless being paid on the grounds of permanent ill health). Your former Council will have discretion to waive any reduction on compassionate grounds.

Please note, that if your council gives their consent to pay your benefits before age 55, it may result in a tax charge on your benefits which would be in addition to the normal PAYE tax on your monthly pension.  Payment of benefits on or after age 55 will not result in this additional tax charge.

It may be possible to make a transfer payment to an overseas pension scheme or arrangement that meets HM Revenue & Customs conditions.