If you joined the LGPS before 1 st April 2014
Your benefits for membership before 1 st April 2014 are
calculated differently.
For membership built up to 31 st March 2008, you
receive a pension of 1/80 th of your final pay plus an
automatic tax-free lump sum of 3 times your pension.
For membership built up from 1 st April 2008 to
31 st March 2014, you receive a pension of 1/60 th of
your final pay. There is no automatic lump sum for
membership built up after March 2008, but you do
have the option to exchange some of your pension for
a tax-free lump sum.
Taking AVCs as cash
If you pay Additional Voluntary Contributions
(AVCs) via the LGPS you may elect to take all of
your AVC fund as a tax-free lump sum if you draw
it at the same time as your main LGPS benefits
provided, when added to your LGPS lump sum, it
does not exceed 25% of the overall value of your
LGPS benefits (including your AVC fund) and the total
lump sum doesn’t exceed £250,000 (2016/17 figure)
less the value of any other pension rights you have in
payment.
Details of this option will be given to you shortly before
your retirement.
Retirement
When can I retire and draw my LGPS
pension?
You can choose to retire and draw your pension from
the LGPS at any time from age 55 to 75, provided you
have met the 2 years vesting period in the scheme.
The Normal Pension Age in the LGPS is linked to your
State Pension Age (but with a minimum of age 65). If
the State Pension Age changes in the future then this
change will also apply to your Normal Pension Age for
benefits built up after 31 st March 2014.
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. You must draw your benefits in the LGPS
before your 75 th birthday.
You may have to retire at your employer’s instigation,
perhaps because of redundancy, business efficiency
or permanent ill health. Your LGPS benefits, even in
these circumstances can, provided you have met the
2 years vesting period in the scheme provide you
with an immediate retirement pension, which may
even be enhanced.
If you voluntarily choose to retire before, on or after
your Normal Pension Age you can defer drawing
your benefits but you must draw them b efore age 75.
If you draw your pension after your Normal Pension
Age, your benefits will be paid at an increased rate to
reflect late payment.
If you built up membership in the LGPS before 1 st April
2014 then you will have membership in the final salary
scheme. These benefits have a different Normal
Pension Age, which for most is age 65.
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