I’m paying in, when can I take my pension?

You can choose to stop work and take your pension at any time between age 55 and 75. Your normal pension age (NPA) is the age when you can retire and take the pension you have built up without early retirement reductions. When you decide to take your benefits, visit the retirement process section for details on how to request payment.

If you wish to continue to work in the same job but reduce your hours or pay, you can flexibly retire with your employer’s permission.

For the pension built up from 1 April 2015, your Normal Pension Age (NPA) is the same as your State Pension Age (SPA), but with a minimum age of 65*. You can find out your State Pension Age (SPA), by using the Government's State Pension Age calculator.

To be entitled to benefits you must have at least 2 years membership or have transferred other pension rights into the Scheme.

Any benefits you built up before 1 April 2015 have a Normal Pension Age (NPA) of 65*. You must take your whole LGPS pension at the same time.

*Your NPA may be earlier if you have protection, please see the section below entitled Rule of 85 and 2020 for more information.

I'm paying Additional Voluntary Contributions (AVCs)

If you have paid into an AVC account with Standard Life or Prudential, you have the option to take these at anytime from age 55 separate from your LPF pension. Please visit their websites for more information on these options.

If you wish to take payment of your AVCs at the same time as your LPF pension, you will have the following options:

- Take all or part of your AVCs as part of your tax free lump sum (limited to 25% of your pension value)

- Convert your AVCs to additional annual pension with LPF

- Convert your AVCs to additional final salary membership with LPF (AVC contract must have begun prior to 30 June 2005)

- Transfer your AVCs to purchase an annuity

- Delay taking your AVCs (this option is only available to members who are granted flexible retirement and will continue paying in to the pension scheme in their new post and their AVC contract started on or after 30 June 2005)

Under current Government legislation, it is recommended that members take guidance from Pension Wise as part of taking payment of their AVC benefits. We will ask you to confirm if you have taken advice or opted out of this option when you retire. You can contact Pension Wise on 0800 100 166 or book an appointment on their website at www.moneyhelper.org.uk/nudge-public.

Taking your pension before your Normal Pension Age (NPA)

There is no reduction if you take your pension at your Normal Pension Age (NPA). If you take your pension early before your Normal Pension Age (NPA) it will be reduced.

The reduction is based on the number of years from the date you take your pension to your Normal Pension Age (NPA). If the number of years is not exact, the reduction percentage is adjusted.

Taking your benefits after your Normal Pension Age (NPA)

If you stay in work after your Normal Pension Age (NPA), you will continue to pay into the LGPS and build up further benefits. You must take your pension by age 75.

If you delay taking your pension, your benefits will be increased. The increase is based on how long after your Normal Pension Age (NPA) you take your pension.

Rule of 85 and 2020

The Rule of 85 allowed members to retire after age 60 without any reduction to their pension where their age and length of scheme membership (in whole years) added up to 85. The rule was removed from the scheme regulations with effect from 1 December 2006. However, certain protections remain in place for members who joined the scheme prior to this date.

You can use our online projectors to see an estimate of the benefits which would be payable at retirement. These projectors apply any Rule of 85 protection that is applicable to your benefits.

Benefits protected by the Rule of 85 are payable without reduction from the later of:
· Age 60 (if the member meets the Rule of 85 criteria on or before this date)
· The date the member satisfies the Rule of 85 (if between 60 and 65)
· Age 65

Different levels of protection apply depending on your age, and these are outlined below.

Group 1

Group 2

Group 3

members born before 1 April 1960 who joined the scheme before 1 December 2006:

· All benefits accrued up to 31 March 2020 are protected by the Rule of 85
· Benefits accrued from 1 April 2020 onwards will be reduced if paid before your State Pension Age

members born on or after 1 April 1960 who joined the scheme before 1 December 2006:

· All benefits accrued up to 31 March 2008 are protected by the Rule of 85
· Benefits accrued from 1 April 2008 to 31 March 2015 will be reduced if paid before age 65
· Benefits accrued from 1 April 2015 onwards will be reduced if paid before your State Pension Age

members who joined the scheme on or after 1 December 2006 (regardless of age):

None of your benefits are protected by the Rule of 85

· Benefits accrued up to 31 March 2015 will be reduced if paid before age 65

· Benefits accrued from 1 April 2015 onwards will be reduced if paid before your State Pension Age

Although benefits accrued after 1 April 2020 will not benefit from the Rule of 85 protection, all protection accrued up to this date will remain in place even if you leave or retire after 31 March 2020.

The reduction is calculated based on how long before the normal payment dates above you would be retiring. The reduction factors, which are provided by the Government Actuary’s Department, can be found in the section on Early Retirement Factors.

If you retire before age 60 and already meet the Rule of 85 criteria, your employer may agree to apply these protections to your benefits immediately upon retirement however this may lead to a cost (known as a strain on the Fund cost) being payable by your employer.

If you retire on flexible retirement before age 60 the rule of 85 counts and benefits are not reduced if you have met the rule of 85 before or on date of leaving. This also would result in a cost to be paid to the Fund by your employer.
Please note that, unless you are taking flexible retirement, it is not possible to take some of your pension benefits and leave the rest until a later date. All benefits must be taken at the same time and, if earlier than the dates outlined above, the appropriate reduction would apply.

Cost of living adjustment

Your LGPS pension increases in line with the cost of living every year throughout your retirement. If the cost of living goes up, so will your pension.