Left the scheme before 31 March 2008
How are my deferred benefits calculated?
If you left the scheme on or before 31 March 2008, your benefits are based on your membership and your final pay on leaving the scheme.
Your membership is defined as:
- 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:
1/80 of Final Pay for each year of membership + 3/80 for Automatic Lump Sum for all membership until 31 March 2008. If you continued to be a member of the scheme on the 1 April 2008 please see the page on membership from 1 April 2008 – 31 March 2014.
When can I take my deferred benefits?
Following the introduction of the Local Government Pension Scheme (Amendment) Regulations 2018, you can now take your benefits from age 55, without your employer’s consent but with reductions, if you left the scheme between 1 April 1998 and 31 March 2008.
Deferred benefits are usually payable without reductions from normal pension age (NPA) which will be between ages 60 and 65, depending on when you joined the scheme. You can see what reductions apply by visiting the webpage on early retirement. If you take your benefits after your NPA they are increased due to late payment.
If you left before 1 April 1998, the rules are slightly different. If you are under 55 then you will have the option to take your benefits at age 55 with reductions. If your benefits are not taken at this time, then you will have to wait until your NPA.
If you left before 1 April 1998 and are already over age 55, the option to draw your benefits early without your employer’s consent, is not currently available to you. In this case you must wait until your NPA, which will be between 60 and 65 depending on when you joined the scheme. This option is being reviewed by the Government.
The regulations, however, do not effect you if you are retired on the grounds of ill health. In this instance you may be able to receive your benefits unreduced, regardless of your age. If you think this applies to you then you should contact your employer as they will have a discretions policy in place to deal with these sorts of requests.
Do my deferred benefits increase with the cost of living?
Your deferred pension is adjusted every year in line with the cost of living, measured by the Consumer Prices Index (CPI), to ensure that it 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.
As a deferred member, you can also now find out how much you have built up in benefits, and project what you could potentially receive when you decide to take them. To do this, you simply need to log into ‘My Pension Online’.
Please note that our current system only lets post-2014 leavers project benefits from age 55. For those of you who left pre-2008, you can still do benefit projections, but these will be from age 60. We expect to have a software update soon, when this will be rectified.
If you would like a projection in the meantime, earlier than age 60, then please contact the Fund.