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.
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SouthYorkshirePensionsAuthority
What if I want to have a gradual move into
retirement?
This is known as flexible retirement. From age 55,
if you reduce your hours or move to a less senior
position, and provided you have met the 2 years
vesting period in the scheme and your employer
agrees, you can draw some or all of the pension
benefits you have built up - helping you ease into
retirement. If you take flexible retirement before your
Normal Pension Age your benefits may be reduced
to take account of their early payment unless your
employer agrees to waive the reduction in whole or
in part. If your employer agrees to flexible retirement
you can still draw your wages / salary from your job on
the reduced hours or grade and continue paying into
the LGPS, building up further benefits in the scheme.
Flexible retirement is at the discretion of your employer
and they must set out their policy on this in a published
statement.
What if I carry on working after my Normal
Pension Age?
If you carry on working after your Normal Pension
Age you will continue to pay into the LGPS, building
up further benefits. When you eventually retire you
will receive your pension unless you choose to delay
drawing it. You must draw your pension by no later than
age 75. Your pension will be paid at an increased rate
to reflect the fact that it will be paid for a shorter time.
How does my pension keep its value?
On retiring on or after age 55 your LGPS pension
increases in line with the cost of living every year
throughout your retirement. As the cost of living
increases, so will your pension. If you are retired on ill
health grounds, your pension