Voluntary early retirement

[Deleted User]

My employer (local authority) have asked for volunteers. I have about 9 years before retirement age. The offer is to take the pension with no loss of benefits. We have been instructed not to contsct the pensions dept at this point. What does this offer mean? Will the employer increase years of service to make up the deficit?

xylophone

To know what is involved you will have to read the terms and conditions in your specific offer http://www.lgps.org.uk/lge/aio/17380433
"There are provisions to pay pension benefits early if a member
leaves employment on the grounds of redundancy, efficiency or ill health but
separate rules and regulations apply in these cases."

[Deleted User]

Thank you. There isno offer as yet, they are asking for expressions of interest. Seems odd though without seeing figures!

hyubh

Missu wrote: »

What does this offer mean? Will the employer increase years of service to make up the deficit?

As such it will mean your membership won't be extended beyond your actual leaving date, however you won't be penalised for taking the pension early because your employer will be paying a 'strain charge' to the pension fund preventing that.

That said, if they have a policy saying they might, LGPS employers can if they choose pay beyond the standard strain charge to give you added years or additional pension as well. In practice this might be done by reducing your redundancy payment, however from the fund's point of view it will be the employer paying not you. Ask HR for a copy of your employer's LGPS discretionary policy statement (they should have one)...

[Deleted User]

Hyubh... Thank you that info is very helpful