Retirement

You can claim your deferred pension benefits any time between age 55 and 75. We will pay your deferred benefits from your Normal Pension Age (NPA). Your NPA is the same as your State Pension age (a minimum of age 65). You can however, choose to take your pension from age 55 at a reduced rate. If you built up pension in the LGPS before 1 April 2014, protections are in place for the NPA that applies to those benefits. Additional protections may apply if you joined the LGPS before 1 October 2006.

Pension benefits taken after your NPA will be increased to account for late payment. Your pension benefits must be paid before your 75th birthday.

Any future changes to your State Pension age will mean that your NPA for the deferred benefits you built up from 1 April 2014 will also change. However, if you were in the scheme before 1 April 2014, the protected NPA for the deferred benefits you built up before 1 April 2014 will not change.

The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028.

Your deferred pension benefits are normally payable in full at your Normal Pension Age (NPA). Your NPA is:

• age 60, if you would have built up 25 years membership if you had remained in the scheme until then, or
• the date you would have built up 25 years membership if you had remained in the scheme, if that date falls between your 60th and 65th birthday, or
• age 65 if, by that age, you would not have built up 25 years membership if you had remained in the scheme until then.

You can choose to take your pension from age 55 at a reduced rate. You must take your benefits from your NPA if they are not already in payment.

The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028.

For members who left the LGPS after 1 April 2008:
Pension benefits are paid at any age without a reduction if you are permanently incapable of carrying out the job you were in immediately prior to when your benefits were deferred and you are unlikely to be capable of gainful employment within 3 years of applying for your pension benefits, or before your Normal Pension Age (NPA) if sooner. You should contact your former employer to discuss your circumstances.

For members who left the LGPS before 31 March 2008:
Pension benefits are paid at any age without a reduction if you are permanently incapable of carrying out the job you were in immediately prior to when your benefits were deferred. You should contact your former employer to discuss your circumstances.

Further information can be found in the Ill Health Retirement Guide – Deferred Member.

The quickest way to get an estimate of your pension benefits (at any time and as often as you like) is on My Pension Online. If you haven’t already registered for My Pension Online why not do it today.

If you decide that you’d like to have your deferred benefits paid, simply contact the pensions team and confirm the date you would like the benefits to be paid from. 

Pensions send your options

• The pensions team will calculate your pension benefits and will email your options to you. If an email address isn’t held on your pension record you will receive your options in the post.
• If you have paid Additional Voluntary Contributions (AVCs) to the Prudential the figures provided will include the value of your AVC fund.

You return your option forms

• You complete and return your option forms to the pensions team.
• If the forms are received before your chosen date of payment, payment will only be made once that date has passed.
• If you have paid AVCs, Prudential are unable to finalise your AVC fund until they have dis-invested your AVC fund. The pensions team are unable to pay your pension benefits until the Prudential have confirmed your final AVC fund value. This can result in a delay to the payment of your benefits.

Paying your lump sum

• Your lump sum (if applicable) will be paid into your nominated bank account.
• Payments are made every Friday and will be made on the first available Friday after your chosen payment date, following receipt of all the relevant paperwork.
• The pensions team will contact you to confirm the date payment will be made.

Paying your pension

• Pension payments are made into your nominated bank account on the last working day of each month and are processed by the Employment Support Service at North Yorkshire Council.
• Due to the normal payroll cycle your first pension payment may be paid up to two months after your chosen payment date but payments will be backdated.
• Tax will initially be deducted at basic rate until HMRC confirm the correct tax code to use. Any tax adjustments will be made in subsequent months using the revised tax code.
• Your pension can be paid to an overseas account, however there may be a monthly charge.
• You can access your pensioner record online. Further details will be provided with your options letter.

Payslips after retirement

• A first payslip is produced when you retire but subsequent payslips are only issued whenever the payment amount changes by more than £5. Payslips are available to view on My Pension Online, where you can also keep your bank account and address details updated. If you do require paper copies of payslips you can request these from North Yorkshire Council’s Employment Support Service.
• A P60 will be produced each tax year and is available to view on My Pension Online. If you require a paper copy of your P60 you can request it from North Yorkshire Council’s Employment Support Service.