Left the scheme between April 2008 – March 2014
How are my deferred benefits calculated?
Your deferred benefits if you left the scheme between 1 April 2008 and 31 March 2014 are based on your membership and your final pay on leaving the scheme.
Your membership is defined by:
- How long you have been a member of the LGPS calculated in years and days
- Any additional membership you have purchased with extra contributions
- Membership bought by a transfer of previous benefits into the LGPS
- Any extra membership awarded by your employer
Your final pay is generally the pay you paid LGPS contributions on during:
- Your last twelve months of membership (or one of the previous three years if higher)
Your deferred benefits are calculated as follows:
Membership between 1 April 2008 to 31 March 2014 – 1/60 of Final Pay for each year of membership.
For membership from 1 April 2008 there is no automatic retirement grant but, under the regulations, when you take payment of your deferred benefits you will be able to give up some of your annual pension to provide a retirement grant.
For every £1 of annual pension you give up, you will receive £12 of retirement grant (subject to certain HMRC limits). More information on this option will be given to you when you take payment of your benefits.
When can I take my deferred benefits?
Deferred benefits are usually payable from Normal Pension Age which is 65 if you left before 1 April 2014. However, you can elect to take your pension early from age 60. If you choose to take your pension before your Normal Pension Age it will normally be reduced, as it is being paid earlier. If you take it after your Normal Pension Age it is increased due to late payment. Visit the webpage on early retirement to view the reductions table.
In certain circumstances you may be able to release your pension early such as in cases of ill-health. It is also possible to take payment of your benefits from age 55 with your employers consent. Your employer should have a discretions policy in place as to how they deal with such requests. You can view your employer’s policy by following the hyperlink at the bottom of the page.
Do my deferred benefits increase with the cost of living?
Your deferred pension is adjusted every year in line with the cost of living, as measured by the Consumer Prices Index (CPI), to ensure your pension keeps its value.
Can I transfer my deferred benefits to another pension scheme?
You have the choice of transferring your pension out to another pension scheme at any time until 12 months before your Normal Pension Age.