Normal Pension Age
You can voluntarily retire and claim your pension in full at your Normal Pension Age (NPA).
For benefits built up from 1 April 2014 your NPA is linked to your State Pension Age (with a minimum of age 65).
Membership built up before 1 April 2014 in the final salary scheme will have a different NPA, for most this will be age 65 but it may be earlier depending on your age and length of membership at retirement.
When can I retire?
You can retire from age 55 and take your Local Government Pension Scheme (LGPS) benefits. However, the Government has announced that the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028. This will not apply to ill health retirements.
Why do we have reduction factors?
If you choose to retire before your NPA your benefits will be reduced as they are being paid out for longer.
The reduction to your pension benefits depends on your age at retirement, the length of your membership and whether you have any protection under the 85-year rule.
What is the 85-year rule?
The 85-year rule is met if you were a member of the LGPS on 30 September 2006 and your age at retirement plus membership in whole years equals 85. For example being age 60 at retirement with 25 years membership.
The 85-year rule protection does not automatically apply if you voluntarily retire before age 60. Working out how you are protected can be complex but as a general guide the following applies:
- If you were age 60 and met the 85-year rule by 31 March 2020 your benefits up to 31 March 2008 are fully protected and tapered reductions apply to benefits from 1 April 2008.
- If you were age 60 on or after 1 April 2020 and met the 85-year rule, benefits up to 31 March 2008 are fully protected but full reductions apply to all benefits from 1 April 2008.
- If you were not a member of the scheme on 30 September 2006 or would never have met the 85-year rule, all benefits are reduced for retirement before NPA.
Reduction Factors
The reduction is based on the length of time in years and days between the date your benefits are paid and your NPA. When the period before NPA is not a whole year the reductions are adjusted.
Reduction factors for retirement on or after 3 July 2023:
| Number of years | Pension reduction | Lump sum reduction (for membership to 31 March 2008) |
|---|---|---|
| 0 | 0% | 0% |
| 1 | 4.9% | 1.7% |
| 2 | 9.3% | 3.3% |
| 3 | 13.5% | 4.9% |
| 4 | 17.4% | 6.5% |
| 5 | 20.9% | 8.1% |
| 6 | 24.3% | 9.6% |
| 7 | 27.4% | 11.1% |
| 8 | 30.3% | 12.6% |
| 9 | 33.0% | 14.1% |
| 10 | 35.6% | 15.5% |
| 11 | 39.5% | N/A |
| 12 | 41.8% | N/A |
| 13 | 43.9% | N/A |