If you lose your job because of redundancy or business efficiency your age and length of scheme membership will determine whether your pension benefits can be paid.
You are aged at least 55 at the date of leaving
If you are aged 55 or over and have met the two years vesting period, your Local Government Pension Scheme benefits will be paid straight away, you cannot defer payment to a later date. Your main pension benefits will not be reduced for early 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.
If you have paid additional contributions
If you leave before your normal pension age, any additional pension paid for by Additional Pension Contributions (APCs), Additional Regular Contributions (ARCs) or Shared Cost Additional Pension Contributions will be reduced for early payment.
If you are paying for extra years in the scheme, you will have the opportunity to pay any remaining contributions that are due in a lump sum in order to complete your contract.
Pension benefits payable
Your pension benefits will not automatically be increased but your employer can choose to give you some additional pension, if their discretion policy allows this. Your employer will be able to advise you on this. Remember your main pension benefits will not be reduced for early payment.
How to calculate your pension benefits
The quickest and easiest way to do your own calculation is on My Pension Online. The results are available immediately so you won’t have to wait for your employer to request the information for you.
If you do not have online access please contact your employer who will request the calculation for you. The pensions team cannot provide this information directly to you.
You are aged under 55 at the date of leaving
If you are aged under 55 and have met the two years vesting period, we cannot pay your pension benefits straight away, you will be entitled to deferred benefits instead. This means that the benefits you have built up in the scheme up to your date of leaving will be held in the fund. Your benefits will receive cost of living increases each April unless you transfer your pension benefits to another pension provider.
If you don’t transfer your deferred benefits, they will normally be paid at your Normal Pension Age (NPA). You can however choose to receive your deferred benefits from age 55 onwards but they will be reduced for early payment.
Remember to log onto My Pension Online to look at your annual benefit statement and do your own retirement calculations from age 55 onwards. This will help you to keep track of your pension benefits.
The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028.
You have less than two years membership
If you have less than two years membership of the scheme, known as the vesting period, you may be entitled to a refund of your pension contributions. We will contact you if this option is available.
Redundancy payments
Your employer will calculate any redundancy payment that may be due to you. Please contact your employer if you have any questions about your redundancy payment.