LGPS early retirment

Acquinas

Hi, I'm in the LGPS and nearly 61. It seems likely that there will be a shake out in the next 12 months. So if I am made redundant I know that I can be paid out without actuarial reduction. But given that it would be part of a compulsory redundancy scheme, does that mean that I would forgo any lump sum that colleagues aged under 55 would be entitled to? I have heard that the employer can take the lump sum to cover the strain payment. Wondering if it might just be better to take the redundancy lump sum in full and defer taking the pension for a couple of years.

Lemon_dr1zzle

If you are made redundant you won’t get the option to defer, the pension has to be paid. 

Silvertabby

Do you mean that your employer has said that they will pay the pension strain costs in lieu of redundancy pay?  

If so, then you would get your pension AND the pension lump sum without any actuarial reductions for early payment, but would forego all or some of a redundancy payment.

As Lemon says, if you are made redundant from the LGPS over (currently) 55 then deferring payment isn't an option.

OldBeanz

Have you looked at putting money into an AVC as that should be able to be taken as a lump sum and would not be reduced ?