Deferred pension can I withdraw it?

wilf55

My partner has a small pension with the local authority.

He is 60 and no longer working due to ill health.

He has a deferred pension worth I see from the statement around 3500. This would really get our house ship shape as with no money it needs decorating etc etc. as he had a mental breakdown this is one of he things that really gets him down

Can we draw on his pension now.

3 yrs ago we tried under medical reasons but got turned down as due to his condition he had missed some appointments with his psychiatrist and Hereford the occupational health person said he wasn't doing all he could to help himself. Even though his own GP said that he would not be able to return to work or do his old job which was as a teaching assistant for teenagers with behavioural problems. That in itself too stressful for him to cope with

Releasing the pension now would make a massive difference to his life. Affording to get the house done up a little. We need carpets curtains decorating the garden sorting out etc. and would help is state of mind massively and I believe helpful to his state of mind


How do we stand. Thanks in advance

hyubh

wilf55 wrote: »

My partner has a small pension with the local authority.

He is 60 and no longer working

He can draw it now with an actuarial reduction, assuming no 'rule of 85' protections, in which case there might not be an actuarial reduction, or less of one. What were his membership dates?

He has a deferred pension worth I see from the statement around 3500. This would really get our house ship shape as with no money it needs decorating etc etc. as he had a mental breakdown this is one of he things that really gets him down

Can we draw on his pension now.

If you mean, take it all as cash, that would involve transferring it out to a DC arrangement. Going by what you've reported I would be doubtful that would be sensible however.

3 yrs ago we tried under medical reasons but got turned down as due to his condition he had missed some appointments with his psychiatrist and Hereford the occupational health person said he wasn't doing all he could to help himself. Even though his own GP said that he would not be able to return to work or do his old job which was as a teaching assistant for teenagers with behavioural problems. That in itself too stressful for him to cope with

Hmm, do you mean he applied for an ill health retirement? If so, what 'tier' was considered (the LGPS has three), and was the decision appealed? (The LGPS has a two-stage appeals process.) Either way, has his condition deteriorated since? If so he should consider applying a second time.

dunstonh

Can we draw on his pension now.

Ask the administrators for figures for commencing the pension now.

wilf55

Hi. Thanks for replies so far.

No s85 applies

Dates are from 2000 to 2005

His condition has deteriorated

Also I cannot remember anything about tiers at the time he applied so sorry can't help on that one. He didn't appeal he sort of just went into give up mode

I rang last week and basically got told to write in again to have it released on medical grounds. I was hoping we could release it under the new pension rules but got told no because it had deferred benefits

Thanks for your help

mania112

The new rules are about releasing pension pots.... as in pensions with a pot of money.

Your husbands is not this type of pension. He has a defined benefit, with an annual pension based on his time served and salary (rather than the performance of the investment his contributions have built up).

That aside, he IS entitled to a benefit now - he can retire now (regardless of health) and be paid a monthly pension.

Ask how much your husband is entitled to now (this will be a tax free amount and a monthly payment)

hyubh

wilf55 wrote: »

I rang last week and basically got told to write in again to have it released on medical grounds. I was hoping we could release it under the new pension rules

Irrelevant unless he transfers out. However, 60 is the earliest age he can draw his pension without any special dispensation anyhow, albeit with a reduction.

Assuming the administrator was kept informed of any address changes, he should have received an annual benefit statement last September or thereabouts. Being pre-2008 membership, the benefits will be an annual pension of 3/80 his final pay multiplied by the number of years he was an active member (ie five or thereabouts), uprated for inflation, plus a standard lump sum of one third the pension. The lump sum can then be increased to the statutory tax free limit by reducing the pension at a rate of £1 of pension for £12 of lump sum (which isn't a particularly good rate - he'd be better of keeping all the pension).