Left but no benefits paid
Whilst you were a member of the LGPS, you will have built up valuable pension benefits which form an important part of your savings for retirement. If you leave the LGPS before retirement, these benefits become deferred benefits. A deferred member is someone who has left the Local Government Pension Scheme (LGPS) but is not yet entitled to receive their LGPS benefits.
Deferred benefits are benefits calculated when you leave the LGPS, and are then held in the Fund for you until:
- you decide to transfer them to another pension scheme; or
- they are due to be paid at your normal pension age (NPA)
If you choose to leave work between age 55 and your normal pension age (NPA), and you want to take payment of your LGPS benefits when you finish work, please make sure you tell your employer. Your NPA is either your 65th birthday, or your state pension age if that is later at age 66, 67 or 68. You do not have to take payment of your LGPS benefits until your 75th birthday.
If you wish to know more about the retirement process please refer to the Retirement Process Guide available in Forms and Guides.
How are deferred benefits calculated?
The way your deferred benefits are calculated will depend on when you left the Local Government Pension Scheme (LGPS).
They are then adjusted each year in line with cost of living – currently measured by the Consumer Prices Index (CPI).
When can I receive payment of deferred benefits?
Payment of deferred benefits depends on when you left the scheme. If you choose to take early payment of your deferred benefits they are subject to an actuarial reduction. The amount of reduction applied depends on the number of years early you take payment of your deferred benefits. To view the reductions table visit the webpage on early retirement.
Can I receive my deferred pension benefits under ill-health grounds?
You can apply for payment of your deferred benefits at any age without reduction if, because of your health, you are permanently incapable of the job you were employed in when you left the LGPS. You must also have a reduced likelihood of being capable of undertaking any gainful employment within three years of applying for the benefit, or by age 65, whichever is the earlier. If this applies to you, then you should contact your former employer to request further details.
Your employer should have a discretions policy in place as to how they deal with such requests. Click here to view your employers policy.
To find out more about your benefits visit the below webpage relevant to when you left the Pension Scheme.
If you are a firefighter member, please visit the firefighters area of the webpage.