Your Retirement Options

There are a number of different retirement packages available depending on the age and circumstances under which you wish to retire. You can choose to completely retire early, or decide to ease into retirement with flexible retirement. Or if circumstances are out with your control, ill health and redundancy retirements are available too.

Taking Your Pension

  • You can choose to retire and take your pension anytime after age 55. 
  • If you choose to take your pension before your Normal Pension Age, this is classed as early retirement and your pension will be reduced for early payment. 
  • If you take your pension after your Normal Pension Age, this is classed as late retirement and your pension will be increased as it is being paid late. 
  • In these circumstances you do not need your employer's permission to retire, you simply need to notify them and agree a retirement date.

Other Retirement Options

As well as just choosing to go early, late or at your Normal Pension Age, there are a number of specific retirements available to members.

  • Flexible Retirement

    From age 55 and with your employer's permission, you can reduce your hours or pay grade and begin to draw some or all of your pension benefits.

    • What pension benefits do I need to take if I do flexible retirement?

      If your employer agrees to flexible retirement you would need to draw:

      • All of the benefits that relate to any pre 1 April 2009 membership, plus
      • All, some or none of the benefits that relate to your membership from 1 April 2009 to 31 March 2015, plus
      • All, some or none of the benefits that relate to your pension built up from 1 April 2015, and
      • Any additional benefits (APCs, SCAPCs, AVCs, ARCs, Added Years)

    • Will my pension be reduced if I take flexible retirement?

      If you take flexible retirement before your Normal Pension Age, your benefits will normally be reduced for early payment. If you take flexible retirement after your Normal Pension Age your benefits will be increased due to late payment.

    • What do I need to do if I want to take flexible retirement?

      Each employer has their own policy on flexible retirement so you will need to contact them first for further information. 

    • Can I continue to pay into the pension scheme if I am still working?

      Yes, with the pay you continue to receive from your employer at your reduced hours or grade, you can pay in and build up further pension benefits.

  • Ill Health Retirement

    You can retire on ill health at any age provided you have been a member of the pension scheme for at least 2 years and your employer, based on the opinion of an independent occupational health advisor is satisfied you are permanently incapable of doing your job.

    • What will I get if I take Ill Health Retirement?

      There are 3 types of ill health retirement and your employer will decide your level of ill health benefit after consultation with an approved medical advisor.

      • Tier 1: You are permanently incapable of doing your job and you are unlikely to be capable of gainful employment before your Normal Pension Age. Your pension benefits are paid immediately and will be increased to what they would have been had you continued working until your Normal Pension Age.
      • Tier 2: You are permanently incapable of doing your job but you are likely to be capable of undertaking gainful employment before your Normal Pension Age. Your pension benefits are paid immediately and with a 25% enhancement.
      • Tier 3: Where an employer terminated employment on the grounds of ill health but the member is not permanently unfit to carry out their current job. Any benefits are paid by your employer. 

    • What is gainful employment?

      Gainful employment is defined as paid employment for no less than 30 hours per week for a period no less than 12 months.

    • What if I am paying extra contributions?

      If you are paying Additional Pension Contributions (APCs), Shared Cost APCs, Additional Regular Contributions or Added Years and you retire on Tier 1 or 2 ill health, you will be credited with all the extra pension (or service for Added years) you set out to buy, even if you have not completed full payment.

      If you are paying Additional Voluntary Contributions (AVCs), your contributions will cease and you can use your AVC fund to buy:

      • annual pension with the LGPS or another pension provider
      • take a cash lump sum
      • buy extra membership - only available for those who started paying AVCs before 30 June 2005

    • What do I need to do if I want to take ill health retirement?

      You should speak to your employer first to arrange a medical assessment. We are unable to give out Tier 1 ill health retirement estimates but you can find out what you could get under Tier 2 ill health by using the ill health retirement calculator available on My Pension+.

  • Redundancy & Efficiency Retirement

    If you are 55 and over, and you lose your job on grounds of redundancy or business efficiency, your pension will be paid immediately. For those who have been in the scheme continually since 5 April 2006, your pension can be paid from age 50 in these circumstances.

    • Will my pension be reduced?

      Your main pension benefits will not be reduced. However any extra pension purchased through:

      • Additional Pension Contributions (APCs), or
      • Shared Cost APCs, or 
      • Additional Regulation Contributions 

      would be reduced if redundancy retirement happens before your Normal Pension Age.

Remember if you leave before your Normal Pension Age your pension will likely be reduced

Normal Pension Age differs depending on when you were paying in:

  • Before 1 April 2015: NPA = 65
  • On or After 1 April 2015: NPA = State Pension Age, with a minimum of 65. That means those who have a State Pension Age lower than 65, still have a NPA of 65 in the pension scheme. As your Normal Pension Age is linked to your State Pension Age, if your State Pension Age increases so too will your Normal Pension Age. You can find out your State Pension Age at http://gov.uk/calculate-state-pension

You cannot take your pre and post April 2015 benefits separately. They must be taken at the same time.

More About Retirement

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