lgps pension, Can my partner take an early payout?

tony541

Hi All,



My partner has worked in care work for 15 years and 2 of those were full time. She is now 62 and has to wait until 66 to retire but would like to take a small sum out of the pension, say £3000, before she retires. Currently she only works 20 hours per week due to ill health and her gross wage is only some £12000.

She has been told this is not possible by her pension department because it was a work base pension!?
Is this correct advise?
Thanks

Tony

[Deleted User]

Hello tony 541,
Sorry, but I cannot provide the correct answer to your query. However, I would think the pension department would be in the best position to provide a full explanation. I suggest your partner pursues the matter with them.
Regards
mrwmartin

hyubh

tony541 wrote: »

My partner has worked in care work for 15 years and 2 of those were full time. She is now 62 and has to wait until 66 to retire

Minor point, but the part of her pension that relates to pre-April 14 membership in the scheme will have a normal pension age of 65 not 66. Also, if she quit her job, she'd be free to take the pension immediately, with an actuarial reduction.

but would like to take a small sum out of the pension, say £3000, before she retires. Currently she only works 20 hours per week due to ill health and her gross wage is only some £12000.

She has been told this is not possible by her pension department because it was a work base pension!?
Is this correct advise?

In a nutshell, yes - the normal situation for a DB pension like your partner's is that it's all or nothing when drawing it. However, given it's LGPS, has your partner inquired about a potential flexible retirement with her employer? This explanation is from Kent, but the rules are common across all LGPS funds:

https://www.kentpensionfund.co.uk/local-government/current-member-paying-in/retirement-in-the-lgps/flexible-retirement

xylophone

Your partner has a defined benefit occupational pension to which she currently contributes.

She cannot take a pension commencement lump sum from the pension until the pension commences payment.

You mention ill health but it appears that she is not ill enough to be considered for ill health retirement.

Is flexible retirement a possibility?

https://www.lgpsmember.org/tol/thinking-leaving-when.php

atush

he works reuduced hours due to ill health?

If so, she should first look into ill health retirement as it could give her better terms than just early retirement. There might also be voluntary retirements proposed in her area.

tony541

Hi all,



Thanks for all the replies, something to chew on.
We weren't aware of 'hyubh's
'' but the part of her pension that relates to pre-April 14 membership in the scheme will have a normal pension age of 65 not 66.
So can we assume she can take a pension at age 65 for all the years before April 14?
Unfortunately there doesnt seem to much volunteer retirements going around at the moment but fingers crossed. The sad thing is she enjoys her job.
Thanks again.
Tony

AlanP_2

tony541 wrote: »

Hi all,



Thanks for all the replies, something to chew on.
We weren't aware of 'hyubh's
'' but the part of her pension that relates to pre-April 14 membership in the scheme will have a normal pension age of 65 not 66.
So can we assume she can take a pension at age 65 for all the years before April 14?
Unfortunately there doesnt seem to much volunteer retirements going around at the moment but fingers crossed. The sad thing is she enjoys her job.
Thanks again.
Tony

Unfortunately the all or nothing aspect still applies so pre and post 2014 cannot be split.

hyubh

tony541 wrote: »

We weren't aware of hyubh's 'but the part of her pension that relates to pre-April 14 membership in the scheme will have a normal pension age of 65 not 66.'
So can we assume she can take a pension at age 65 for all the years before April 14?

No, as it's treated as just a different element of the same pension. However, if she drew the pension at 66, this element would be slightly increased for being taken late. Conversely, if she drew the pension at 65, only that part which related to membership from April 2014 onwards would be reduced.