Flexibility to pay more or less contributions - you can boost your pension by paying more contributions , which you would get tax relief on . You also have the option in the LGPS to pay half your normal contributions in return for half your normal pension . This is known as the 50 / 50 section of the scheme and is designed to help members stay in the scheme when times are financially tough .
Tax-free cash - you have the option when you draw your pension to exchange part of it for some tax-free cash .
Peace of mind - your family enjoys financial security , with immediate life cover and a pension for your spouse , civil partner or eligible cohabiting partner and eligible children in the event of your death in service . If you ever become seriously ill and you ’ ve met the 2 years vesting period , you could receive immediate ill health benefits .
Freedom to choose when to take your pension - you do not need to have reached your Normal Pension Age in order to take your pension as , once you ’ ve met the 2 years vesting period , you can choose to retire and draw your pension at any time between age 55 and 75 . Your Normal Pension Age is simply the age you can retire and take the pension you ’ ve built up in full . However , if you choose to take your pension before your Normal Pension Age it will normally be reduced , as it ’ s being paid earlier . If you take it later than your Normal Pension Age it ’ s increased because it ’ s being paid later .
Redundancy and Efficiency Retirement - if you are made redundant or retired in the interests of business efficiency at or after age 55 you will , provided you ’ ve met the 2 years vesting period , receive immediate payment of the benefits you ’ ve built up ( but there would be a reduction for early payment of any additional pension you have chosen to buy ). Flexible retirement - if you reduce your hours or move to a less senior position at or after age 55 you can , provided your employer agrees , and you ’ ve met the 2 years vesting period , draw some or all of the benefits you have already built up , helping you ease into retirement , although your benefits may be reduced for early payment . SouthYorkshirePensionsAuthority 5