Deferred benefits
If you leave before your Normal Pension Age
and you meet the 2 years vesting period you will
be entitled to deferred benefits within the LGPS.
Your deferred LGPS benefits will be calculated as
described in the How is my pension worked out
section using the length of your membership up to the
date that you left the scheme. During the period your
pension benefits are deferred they will be increased
each year in line with the cost of living.
Unless you decide to transfer your deferred benefits
to another pension scheme, they will normally be paid
unreduced at your Normal Pension Age, but:
• they may be put into payment earlier and in full
if, because of ill health, you are permanently
incapable of doing the job you were working in
when you left the LGPS and you are unlikely
to be capable of undertaking any gainful
employment within 3 years of applying for
the benefit or by your Normal Pension Age,
whichever is the earlier; or
• you can, if you wish, elect to receive your
deferred benefits early from age 55 onwards, or
• you can, if you wish, elect not to draw your
deferred benefits at your Normal Pension Age
and defer drawing them till some time later
(although they must be paid by age 75).
Benefits paid earlier than your Normal Pension Age,
other than on the grounds of permanent ill health, may
be reduced to take account of their early payment
and the fact that your pension will be paid for longer.
Conversely, benefits paid after your Normal Pension
Age will be increased.
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SouthYorkshirePensionsAuthority
If you leave with deferred benefits and you die before they come into payment, a
lump sum death grant equal to 5 years’ pension will be paid. If you have deferred
benefits and are also an active member of the scheme when you die this may
impact on the death grant you receive. The LGPS allows you to say who you
would like any death grant to be paid to by completing a Lump Sum Death Grant
Nomination Form available from SYPA. The scheme’s administering authority,
however, retains absolute discretion when deciding on who to pay any death grant
to. You can find out how to contact SYPA at the end of this guide.
If you leave with deferred benefits and die before they come into payment a
spouse’s, civil partner’s or, subject to certain qualifying conditions, an eligible
cohabiting partner’s pension and pensions for eligible children are payable.
For each year of membership you built up from 1 st April 2014 to your date of
death you would have been credited with a pension equal to a proportion (i.e.
1/49 th or, for any period you were in the 50/50 section of the scheme, 1/98 th ) of
the pensionable pay (or assumed pensionable pay where applicable) you
received during that year. The pension payable to a spouse, civil partner or
eligible cohabiting partner is calculated on a different proportion i.e. 1/160 th
of the pensionable pay (or assumed pensionable pay where applicable) to
which is added 49/160 ths of the amount of any pension credited to your pension
account following a transfer of pension rights into the scheme from another
pension scheme or arrangement. For final salary membership built up before 1 st
April 2014 the pension payable to a spouse or civil partner is equal to 1/160 th
of your final pay times the period of your membership in the scheme up to 31 st
March 2014 upon which your pension is based, unless you marry or enter into
a civil partnership after retiring in which case it could be less. For an eligible
cohabiting partner the calculation is the same but the pension is only based
on the period of membership after 5 th April 1988 (plus any of your membership
before 6 th April 1988 for which you’ve paid additi