The table below shows the different types of retirement from the LGPS.
Please note: The table mentions the current minimum retirement age of 55. The UK Government has announced that the earliest age you can take your pension will increase from age 55 to 57 with effect from 6th 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 4th 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 6th April 2028.
| Normal retirement |
Your normal retirement age is either your State Pension age, or 65 if later.
You can find out your State Pension Age here.
If you start to take your pension at your normal retirement age, you will receive the full amount with no reductions.
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| Early retirement |
If you leave between age 55 and normal retirement age, you can still receive your pension straight away.
The pension will be reduced because you are taking it early. The earlier you go, the lower your pension will be. Your retirement pack will give you the details.
You don’t have to take the pension if you don’t want to. You can choose to defer the pension for now and receive it in the future.
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| Late retirement |
If you leave between normal retirement age and age 75, you can receive your pension straight away. The pension will be slightly higher because you are taking it later than expected. The later you go, the higher the pension will be.
If you continue to work beyond your 75th birthday, you must stop paying LGPS contributions and start receiving your pension.
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| Redundancy or Efficiency of the Service |
If you are over 55, then made redundant or leave due to efficiency of the service, you must receive your pension straight away. Currently, the pension will not be reduced for early payment.
Although the pension will not be reduced, it will not be enhanced either to give you the pension you could have built up if you carried on paying contributions until your normal retirement age.
If you have paid extra contributions to improve the value of your pension, this part of your pension will be reduced if you go before normal retirement age.
New rules are likely to come out limiting the total cost that your employer can pay for you to retire on redundancy or efficiency grounds. If you retire on redundancy or efficiency grounds after these new rules come out, it’s possible that your pension will be reduced if you take it early.
We will update our website with details when more information is available.
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| Flexible retirement |
Flexible retirement allows you to start receiving the pension you have already built up and carry on working for the same employer and earn a salary. You would keep paying LGPS contributions and build up a second smaller pension for when you fully retire.
You must meet certain conditions before you can do this:
- You must be aged 55 or over;
- You must either reduce your working hours or move to a job with a lower salary, and
- You must get your employer’s consent. (Your employer must have a flexible retirement policy before agreeing.)
The pension will be reduced if you retire flexibly before normal retirement age. The earlier you go, the lower your pension will be. Your retirement pack will give you the details.
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| Ill health retirement |
If you need to leave your job due to ill health, you might receive your pension straight away.
Your employer will ask an independent doctor to confirm that:
- You are now permanently incapable of doing your current job
- You are not immediately capable of taking up any gainful employment. This means paid work for 30 hours a week or more, for at least a full year
There are three tiers of ill health retirement, depending on the ill health condition. In all three tiers, your pension would not be reduced for early payment.
Tier 1
- You are unlikely to be capable of gainful employment before normal retirement age
- Your pension will be enhanced to include the service you could have built up to normal retirement age
- The pension is payable for life
Tier 2
- You are unlikely to be capable of gainful employment within 3 years of leaving, but likely to be capable before normal retirement age
- Your pension will still be enhanced, but by 25% of the extra amount that Tier 1 would have added
- The pension is payable for life
Tier 3
- You are likely to be capable of gainful employment within 3 years of leaving
- Your ex-employer would review your pension after 18 months:
- If you are capable of gainful employment, the pension stops
- If you are still not capable of undertaking gainful employment but will be capable in the next 18 months, the Tier 3 pension continues for a further 18 months or until you become capable again
- If you are not capable of undertaking gainful employment and your ill health has worsened, your ex-employer may increase the pension to Tier 2 from the date of review
If you are receiving a Tier 3 pension and then become capable of gainful employment again, you must let your ex-employer know.
Once your Tier 3 pension payments stop, you can start to receive them again at any point from age 55. Your pension will be reduced if you start to receive it again before normal retirement age.
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If you are over 55 and opt out of paying contributions, you cannot receive your pension straight away. You have to leave the job you opted out of first, unless you are age 75.