When can I take my deferred pension?

Couple discussing pension arrangements with an advisor

Your deferred benefits are normally payable at your Normal Pension Age (NPA) in the local government pension scheme. Your NPA is linked to your State Pension Age (but with a minimum of age 65).

They can be paid earlier, or later than your NPA. There are two ways they can be paid earlier and these are:

  • early payment of deferred benefits at your request, or
  • early payment of deferred benefits due to permanent ill-health.

Requesting early payment of your deferred benefits

You can choose to take early payment of your deferred benefits from age 55, if you were in the 2014 scheme. If you left before 1 April 2014 then you can take your benefits from age 60, however there may be possible reductions. You do not need your former employer’s consent to draw your pension before your Normal Pension Age.

If you choose to draw your deferred benefits before your Normal Pension Age your benefits will normally be reduced to take account of their early payment and the fact that your pension will be paid for longer.

The reduction is based on the length of time (in years and days) that you retire early i.e. the period between the date your benefits are paid and your NPA.

Reductions if you choose to retire before your Normal Pension Age
Number of years paid early Men Women
0 0.0% 0.0%
1 5.6% 5.2%
2 10.8% 10.1%
3 15.5% 14.6%
4 20.0% 18.8%
5 24.0% 22.7%
6 27.8% 26.4%
7 31.4% 29.8%
8 34.7% 33.0%
9 37.7% 36.1%
10 40.6% 38.9%
11 44.2% 42.2%
12 47.6% 45.5%
13 50.9% 48.6%

Please note that if you built up pension in the LGPS before 1 April 2014 then protections are in place for the Normal Pension Age that applies to those benefits. In addition, if you were a member of the LGPS on 30 September 2006, some or all of your benefits paid early could be protected from the reduction if you are a rule of 85 protected member.

Your former employer can agree to waive any reduction. This is a discretion and you can ask your former employer what their policy on this is.

Payment of deferred benefits due to permanent ill health

You can apply for payment of your deferred benefits at any age, without reduction if, because of ill health, you would be permanently incapable of the job you were working in when you left the LGPS and you are unlikely to be capable of undertaking any gainful employment within three years of applying for the benefit or by your Normal Pension Age, whichever is the earlier. 

If you think payment of deferred benefits on the grounds of ill health could apply to you please contact your old employer.

Payment of deferred benefits at or after NPA

If you do not take early payment of deferred benefits under either of the above two methods the deferred benefits will be paid after age 65 or your NPA, whichever is higher unless you opt to delay payment beyond that age.

If you draw your deferred benefits after this date your pension will be increased by 0.01% for each day payment of your pension is delayed beyond this date. The increase for any automatic Lump Sum is now 0.001% per day. Deferred benefits must be paid before age 75.

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