Local Government Pension Scheme

saver861

hyubh wrote: »

Hmm, I read it as 25 years prospectively rather than 25 years so far... but we're all just guessing at the moment I think!

lol .. looking at it again, you might be right. Such misunderstanding is typical from relatively generalised posts anyway so, often the way something is intended gets lost in the post!

will1am3

Hi, under the new rules, can you take this type of pension from 55?

Thanks

hyubh

will1am3 wrote: »

Hi, under the new rules, can you take this type of pension from 55?

The 'new rules' are irrelevant. If you're a current member of the LGPS in England or Wales you can draw your pension from age 55, with an actuarial reduction, assuming you leave the job you were earning the LGPS pension with.

will1am3

Would you have to leave your job to take the pension? or could you take it and carry on working?

AlanP_2

will1am3 wrote: »

Would you have to leave your job to take the pension? or could you take it and carry on working?

You would need to leave any employer that was part of the LGPS i.e. retire.

You can't be an active member of the scheme and a pensioner as far as I understand it.

If you then work for someone else not in the LGPS that is up to you.


Is your current employer the one who would be paying the LGPS pension?

saver861

will1am3 wrote: »

Would you have to leave your job to take the pension? or could you take it and carry on working?

You would need to retire from that position to gain access to the pension.

However, even if you could do as you ask, it most likely would not be beneficial as you would be paying tax on your pension and losing your additional years by not paying into it. On top of that, there would be the reduction for taking it early if that was the case.

woolly_wombat

saver861 wrote: »

You would need to retire from that position to gain access to the pension.

Or be made redundant once 55 or over, triggering immediate payment without early reduction.

A former colleague of mine was made redundant at 50 (under earlier LGPS rules) and started drawing a pension. After a short break he found another job and started building entitlement to a second LGPS pension. That was nearly 20 years ago and he's thinking of retiring for good in the next few months!

WW

saver861

woolly_wombat wrote: »

Or be made redundant once 55 or over, triggering immediate payment without early reduction.

Yes - very true and I should know as I was one of the lucky ones that got it!

woolly_wombat wrote: »

A former colleague of mine was made redundant at 50 (under earlier LGPS rules) and started drawing a pension.

It changed from 50 to 55 about six or seven years ago. There were some who waived their redundancy notice periods etc to get in on it. He would probably have had a somewhat better redundancy package than he would get now also - so he was a winner all round.

hyubh

will1am3 wrote: »

Would you have to leave your job to take the pension? or could you take it and carry on working?

There's such a thing as 'flexible retirement' where you drop down a number of hours or a grade or two but then draw the pension to date as well. However, that's in the realm of employer-agreed early retirements, for obvious and perhaps not so obvious reasons - it's not just a matter of them agreeing to a reduction in hours since there can be a 'strain charge' involved (i.e., the employer having to pay a capital amount to the pension fund to offset the cost of the early retirement to it). HR should have a written policy on the matter - I'd contact them if you're interested in this possibility.

hyubh

AlanP wrote: »

You would need to leave any employer that was part of the LGPS i.e. retire.

Not necessarily. If the OP left, drew the pension, then got another job with LGPS membership, then the final salary part of the pension may or may not get abated depending on the (written) policy of the relevant administering authority (some enforce abatement rules, some decide not to on the grounds it's not worth the hassle). Abatement provisions have been removed completely for CARE scheme pension, however in practical terms that's a bit academic while nobody has much CARE membership of note...