The deferred pension benefits you will receive depend on the date you left the LGPS.
*The UK Government has announced that the earliest age you can take your pension will increase from age 55 to 57 with effect from 6 April 2028. This does not apply if you have to take your pension early due to ill health.
You could be protected from this increase if you joined the LGPS in England and Wales before 4 November 2021. You could also be protected if you transferred a previous pension into the LGPS if certain conditions are met. However, you will only be able to use this protection when you take your LGPS pension if the LGPS rules allow you to take your pension before age 57.
The UK Government makes the LGPS rules. It has not yet confirmed if it will allow members who qualify for protection to take their LGPS pension before age 57, from 6 April 2028.
LGPS 2008 Scheme
Left between 1 April 2008 and 31 March 2014
If you joined the LGPS on or after 1 April 2008 and left before 1 April 2014 your deferred benefits will be calculated as follows:
Annual Pension – 1/60 x your final pay x total membership
At retirement, you will have the option to receive up to 25% of the capital value of your pension benefits, provided it is within the limits set by Her Majesty’s Revenue and Customs (HMRC). You will receive £12.00 lump sum for each £1.00 of pension given up.
If you have both pre and post April 2008 membership of the LGPS
If you become a deferred member after 1st April 2008 and also have membership prior to 1st April 2008, your pre 1st April 2008 membership provides a deferred pension and an automatic tax free lump. The deferred benefits will be calculated as follows:
Membership up to and including 31 March 2008
Annual Pension – 1/80 x your final pay x total membership
Automatic Lump Sum – 3/80 x your final pay x total membership
Membership from 1 April 2008 to 31 March 2014
Annual Pension – 1/60 x your final pay x total membership
The two amounts of pension will be added together to give you your total deferred benefits.
At retirement, you will have the option to receive up to 25% of the capital value of your pension benefits, which will include your automatic lump sum based on your membership to 31 March 2008, provided it is within the limits set by Her Majesty’s Revenue and Customs (HMRC). You will receive £12.00 lump sum for each £1.00 of pension given up
Inflation Proofing
To protect their value, your deferred benefits are increased in line with the Consumer Price Index (CPI) which measures price inflation. Details of the latest pensions increase can be found on the ‘Pensioners’ pages.
Payment Date
Deferred benefits normally become payable at age 65, unless you opt to defer payment beyond that age.
It may be possible for you to receive your deferred benefits earlier as follows:
- You may elect for early payment at, or after age 55. The benefits will be subject to reductions if paid before age 65 to take account of early payment, although your benefits built up on or before 31 March 2008 could be protected from the reduction if you joined the LGPS before 1 October 2006 and you are a protected member (see Early Retirement page under Current Employees).
- You apply to your former employer to receive your deferred benefits between the ages of 55 and 60 with their consent. If permitted, your former employing authority will have discretion to waive any reduction for early payment on compassionate grounds.
- You can request early payment of your deferred benefits on the grounds of ill health at any age, without reduction, if you become too ill to work. You should contact your former employer to arrange a medical, if this applies to you.
Before determining whether to agree to such a request, your former employer must obtain a certificate from an approved Independent Registered Medical Practitioner that you are permanently incapable of doing the job you were working in when you left the LGPS and you have a reduced likelihood of being capable of obtaining gainful employment within 3 years of applying for the benefit or by age 65, whichever is earlier.
Gainful employment is defined as ‘paid employment for not less than 30 hours per week for a period of not less than 12 months.
Please note; if approved, your LGPS benefits will be released without any ill health enhancement.
LGPS 1997 Scheme
Left on or before 31 March 2008
If you left on or before 31 March 2008, you will receive an automatic tax free lump sum, and an annual pension, calculated as follows:
Annual Pension – 1/80 x your Final Pay x Total Membership
Automatic Lump Sum – 3/80 x your Final Pay x Total Membership
At retirement, you will have the option to receive up to 25% of the capital value of your pension benefits, which will include your automatic lump sum based on your membership to 31 March 2008, provided it is within the limits set by Her Majesty’s Revenue and Customs (HMRC). You will receive £12.00 lump sum for each £1.00 of pension given up
Inflation Proofing
To protect their value, your deferred benefits are increased in line with the Consumer Price Index (CPI) which measures price inflation. Details of the latest pensions increase can be found on the ‘Pensioners’ pages.
Payment Date
Deferred benefits normally become payable at age 65, unless you opt to defer payment beyond that age to no later than age 75.
It may be possible for you to receive your deferred benefits earlier as follows:
- You may elect for early payment at, or after age 55. The benefits will be subject to reductions if paid before age 65 to take account of early payment, although some or all of your benefits could be protected from the reduction if you joined the LGPS before 1 October 2006 and you are a protected member (see Early Retirement page under Current Employees).
- You apply to your former employer to receive your deferred benefits between the ages of 50 and 60 with their consent. If permitted, your former employing authority will have discretion to waive any reduction for early payment on compassionate grounds (please note that if you left on or before 31 March 1998 you can only apply to have your deferred benefits released on compassionate grounds).
- You can request early payment of your deferred benefits on the grounds of ill health at any age, without reduction, if you become too ill to work. You should contact your former employer to arrange a medical, if this applies to you.
Before determining whether to agree to such a request, your former employer must obtain a certificate from an approved Independent Registered Medical Practitioner that you are permanently incapable of discharging efficiently the duties of your former local government employment because of ill-health or infirmity of mind or body
Please note; if approved, your LGPS benefits will be released without any ill health enhancement.
