Taking your deferred pension
If you left the LGPS on or after 1 April 1998
Your deferred benefits are payable in full from your Normal Pension Age in the LGPS. You do not have to take your deferred benefits at your Normal Pension Age, you can take them at any time between age 55 and 75. If you were a member of the Scheme before and after 1 April 2015, the benefits built up before 1 April 2015 will have a protected Normal Pension Age – usually age 65.
The UK Government has announced the earliest age that you can take your deferred pension will increase from age 55 to 57 from 6 April 2028. This will not apply if you apply for your pension early because of your ill health.
Choosing to take your deferred benefits early
You can choose to take your deferred benefits from age 55 onwards. You do not need your former employer’s consent to take your pension early. See the section on Early retirement reductions above to find out about how your benefits will be reduced.
If you were a member of the LGPS at any time between 1 April 1998 and 30 November 2006, some or all of your benefits could be paid in full before age 65 if you are protected by the 85-year rule. Find out more about the 85-year rule in the section above.
Taking your deferred benefits from your Normal Pension Age
If you do not take your deferred benefits early, they will normally be paid from your Normal Pension Age. You can choose to delay payment beyond that age.
If you take your deferred benefits after your Normal Pension Age your pension benefits will be increased. You must take your deferred benefits by age 75.
If you have a Guaranteed Minimum Pension, it may not always be possible to delay payment of your whole pension. Contact your pension fund for more information about this.
Taking your deferred pension if you are too ill to work
If you are too ill to work, you can ask for your deferred pension to be paid immediately, whatever your age.
Your pension fund will need to consider if you are permanently unable to do your old job because of your ill health. If you left the LGPS after 31 March 2009, they would also need to consider whether you are able to undertake any gainful employment before your Normal Pension Age.
Gainful employment is paid employment of at least 30 hours per week that lasts for a year or more.
If your application is successful, your deferred benefits would be paid to you immediately. Your benefits would not be reduced for early payment.
If you left the LGPS before 1 April 1998
Your deferred pension benefits are normally payable in full at your Normal Pension Age. Your Normal Pension Age is:
- age 60, if you would have built up 25 years membership if you had remained in the scheme until then, or
- the date you would have built up 25 years membership if you had remained in the scheme, if that date falls between your 60th and 65th birthday, or
- age 65 if, by that age, you would not have built up 25 years membership if you had remained in the scheme until then.
You must take your benefits from your Normal Pension Age if they are not already in payment.
Early payment of deferred benefits at your request
You can choose to take payment of your deferred benefits from age 55. You do not need your former employer’s consent to take your pension early. See the section on Early retirement reductions above to find out about how your benefits will be reduced.
The UK Government has announced the earliest age that you can take your deferred pension will increase from age 55 to 57 from 6 April 2028. This will not apply to ill health retirements.
Early payment of deferred benefits on compassionate grounds
You can ask your former employer to pay your benefits early on compassionate grounds from age 50 or over. If your former employer agrees, your benefits will not be reduced for early payment. This is a discretion and you can ask your employer what their policy on this is.
Under tax law, pension benefits taken before age 55 incur significant tax charges for the member. If you are able to take your benefits before 55, your former employer or pension fund will give you further information.
Early payment of deferred benefits due to permanent ill health
You can apply for payment of your deferred benefits because of your health at any age. Your former employer would need to consider whether you are permanently incapable of doing the job you were working in when you left the LGPS. If your application is successful, your pension benefits will be paid immediately and would not be reduced for early payment.