Early Release of Deferred Benefits

recovering_spendaholic

I was a member of London Pensions Fund Authority for 9 years and was made redundant on 31 December 2005, when my pension was frozen. I had been off ill for a few months in 2005, and in July 2006 was signed off work and have been living on incapacity benefit, topped up by the remainder of my redundancy money ever since. I need to have two heart procedures, but there are other issues and I may have to wait a long time to see if they can be done, if ever. I was wondering if it would be possible to get early release of my pension on ill-health grounds and if I do will I get any enhancement? If I had been retired on ill health grounds when I was still working, my service would have been doubled, but I don't think that applies to deferred benefits. I am 48. Can anyone tell me?

EdInvestor

Part of the Local Govt scheme.

http://www.yourpension.org.uk/index.asp?agencychk=1

CAE

You should write to your ex employer requesting payment of your pension benefits on ill health grounds, and will need to be seen by an occupational health physician, who should certify that you are unfit to carry out the duties of your old job. If the physician agrees, your LGPS deferred benefits can be bought into pay, although you will not receive any enhancement.

However, should your deferred benefits be brought into payment before age 55 on the grounds of permanent ill health, pensions increase is only payable before your 55th birthday if you are certified as being incapable of engaging in any regular full- time work; if you are not so certified, or your deferred benefits are brought into payment with your former employing authority's consent before age 55, the benefits will be paid at a flat rate until age 55. Then, at age 55, the benefits will be increased by the accumulated effect of inflation since they were brought into payment.