What happens if I lose my job through redundancy or business efficiency?

The LGPS benefits you have built up will be payable immediately without any early retirement reductions if your employer makes you redundant or you are retired on the grounds of business efficiency providing:

  • you are age 55 or over
  • you have been an LGPS Scheme member for at least two years (the minimum scheme membership to qualify for a scheme benefit)

If you are under your Normal Pension Age, your main LGPS benefits will not be reduced for early payment. However, if you have bought any additional pension, this will be reduced because of early payment. This applies to any additional pension paid for by:

  • Additional Pension Contributions (APCs)
  • Shared Cost Additional Pension Contributions (SCAPCs)
  • Additional Regular Contributions (ARCs)

Will my pension be reduced? 

If you are made redundant your pension benefits will be calculated up to your date of redundancy and released to you without an early retirement reduction being applied. 

Will my pension be increased to my Normal Pension Age? 

Your pension is not automatically increased to the value at your Normal Pension Age if you are made redundant. However, at their discretion, your employer may decide to award an additional amount of pension to improve your retirement benefits. Every employer is required to produce and publish a statement of policy, setting out how it intends to use this and other discretions available to it under the Scheme regulations.

How to get a pension estimate if you are made redundant

We are unable to provide redundancy figures directly to scheme members. The decision on redundancy is made by the employer and a request for an estimate must come from the employer directly.