Will my pension be reduced if I voluntarily retire before my Normal Pension Age ? If you choose to retire before your Normal Pension Age your benefits will normally be reduced to take account of being paid for longer . Your benefits are initially calculated as detailed under the heading How is my pension worked out ? and are then reduced . How much your benefits are reduced by depends on how early you draw them . If you were a member of the LGPS on 30 th September 2006 , some or all of your benefits paid early could be protected from the reduction if you have rule of 85 protection . What if I lose my job through redundancy or business efficiency ? If you are aged 55 or over you will be entitled to the immediate unreduced payment of your LGPS benefits , provided , you have met the 2 years vesting period in the scheme . However , any additional pension paid for by Additional Pension Contributions ( APCs ) or Shared Cost Additional Pension Contributions ( SCAPCs ) would be paid at a reduced rate if the retirement occurred before your Normal Pension Age ( to take account of the additional pension being paid for longer ). Also if you have bought additional pension by Additional Regular Contributions ( ARCs ), that additional pension would be paid at a reduced rate if the retirement occurred before your pre 1 st April 2014 Normal Pension Age which , for most , is age 65 .
What happens if I have to retire early due to ill health ? If you have to leave work due to illness you may be able to receive immediate payment of your benefits . To qualify for ill health benefits you have to have met the 2 years vesting period in the scheme and your employer , based on an opinion from an independent occupational health physician appointed by them , must be satisfied that you will be permanently unable to do your own job until your Normal Pension Age and that you are not immediately capable of undertaking gainful employment . Ill health benefits can be paid at any age and are not reduced on account of early payment - in fact , your benefits could be increased to make up for your early retirement if you are unlikely to be capable of gainful employment within 3 years of leaving . 20 SouthYorkshirePensionsAuthority