local government deferred pension

kate12345_2

I was made redundant from my local council at the age off 51. Under the new pension rules if you are still employed by the Council you can take your pension at the age of 55 without their consent. However if you have a deferred pension I have been told because of the capital cost to the council they will not allow me to take my pension. I think this is discrimination - can I have your thoughts please.

saver861

Would you not be able to take it with the reduction? If you are 55 and your retirement age is 65 then there will be a hefty reduction, about 40% at least.

Thus, it's you that takes the hit rather than the council!

hyubh

kate12345 wrote: »

I was made redundant from my local council at the age off 51. Under the new pension rules if you are still employed by the Council you can take your pension at the age of 55 without their consent. However if you have a deferred pension I have been told because of the capital cost to the council they will not allow me to take my pension. I think this is discrimination - can I have your thoughts please.

It's hardly 'discrimination'. The actuarial reduction involved in drawing at 55 without employer consent (meaning, without employer subsidy) is hefty, so it's arguable how much of a benefit it is. More to the point, your deferred benefits are just governed by the rules of the scheme as they stood when you left. If it were 'discrimination' for ex-members not to have exactly the same terms as current members, then the potential for 'discrimination' would presumably work both ways (are people who joined since the 85 year rule was abolished for newbies 'discriminated' against?), and everyone could have their pick of any scheme rule enacted over the past 90 years...

mgdavid

On average you have 40 years of life to go. Working for 10 or 15 of them should be no problem, given that we have no other detail. 51 is a good age to be thinking about and planning for retirement at NRA, but if one wants to retire at 51 one needs to start planning many years earlier.