Flexible retirement is a way to gradually move into retirement by allowing current members of the Local Government Pension Scheme (LGPS) to access their pension benefits and continue to work.
At what age can I take flexible retirement?
Any LGPS member who is *age 55 or over and has met the two year vesting period can ask their employer about accessing their pension benefits under flexible retirement. Flexible retirement is an employer discretion and they must have a policy on this.
*The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028.
Can I take flexible retirement and continue to work full time in my current job?
No, the regulations say that you must either:
- reduce your hours or
- reduce your grade
Your employer’s discretion policy will specify whether you need to reduce your hours or grade.
How do I apply for flexible retirement?
If you are interested in taking flexible retirement you should speak to your line manager/ HR section who will consider your request. Your employer’s flexible retirement policy will explain their criteria for allowing the payment of pension benefits. Your employer can turn down the request in line with their policy.
Can I take flexible retirement but only take part of my pension benefits?
Yes, you can take part of your pension benefits but you must take any benefits that you built up before 1 April 2008. Partial flexible retirement is an employer discretion and they must have a policy on this.
Can the pensions team provide me with a flexible retirement estimate?
No, the decision to allow flexible retirement is made by your employer and therefore only your employer can request a pension estimate.
However, you can do your own early retirement estimates from age 55 (which will include reductions for early payment) on My Pension Online.
Will my pension benefits be reduced?
If you take flexible retirement before age 65 or your Normal Pension Age (NPA) if this is later, your benefits may be reduced for early payment. If you were a member of the LGPS on 30 September 2006, some or all of your benefits paid early on flexible retirement could be protected from the reduction under the old rule of 85.
Can I continue to pay pension contributions after taking flexible retirement?
Yes, your employer should enrol you back into the LGPS automatically, although you can opt out if you wish. You will have a new pension record and you will build up another pension (calculated on your new level of pay) which can be paid when you leave your job. If you take your ‘new’ benefits before age 65 or your Normal Pension Age (NPA) if this is later, your benefits will be reduced for early payment.
I am over age 55 can I opt out of the LGPS, carry on working and get my pension?
No, if you opt out of the LGPS the regulations do not allow access to your pension benefits until you leave employment or reach your Normal Pension Age (NPA); this is not flexible retirement. Flexible retirement can only be used following the process above.
I am over 55, can I leave my current employment for one day, take my pension benefits and start working again with the same employer?
No, unless you are taking advantage of flexible retirement you must retire to access your pension benefits. If a new employment with the same employer has been arranged before you leave, you would not be retiring.
What do I do next?
Speak to your line manager/ HR section to discuss your employer’s flexible retirement policy and process.