LGPS pension

littleD

Does anyone have any experience of  or know whether you can take a LGPS pension and still carry on working please? thanks

p00hsticks

@Silvertabby is our resident LGPS expert I think, but just to clarify do you mean to take your pension but then just to continue working for the same LGPS employer ?

Sarahspangles

littleD said:

Does anyone have any experience of  or know whether you can take a LGPS pension and still carry on working please? thanks

You need to give a little more info.

Is this a deferred pension (from a job you used to have) or your current one, that you’re paying into.

If you’re still working, is your current employer the same Authority i.e. you’ve gone back to work for them after doing something else

Do you understand that you’ll be taxed at your normal rate on this pension, i.e. 20% for most, but in some cases a pension on top of salary will take you into higher rate tax

littleD

Thanks for the response and link to the expert @Silvertabbly - yes, I am in a position to be able to retire and then continue at either the same hours or reduced.

Sarahspangles

littleD said:

Thanks for the response and link to the expert @Silvertabbly - yes, I am in a position to be able to retire and then continue at either the same hours or reduced.

Have you started a conversation with a manager - or have they approached you - about flexible retirement?

Lemon_dr1zzle

Only way is through flexible retirement.  

littleD

Thanks folks, is flexible retirement just a reduction in hours? What would happen then, would I just take the retirements package and stop contributing to the scheme. thanks again

p00hsticks

littleD said:

Thanks for the response and link to the expert @Silvertabbly - yes, I am in a position to be able to retire and then continue at either the same hours or reduced.

Just editted my original post - it's actually Silvertabby

Silvertabby

With flexible retirement, you either reduce your hours and continue in the same job, or side step into a lower paid post with less responsibility.  A reduction in hours is the usual flexi reason.

Flexible retirement is an employer discretion, and so very much subject to their approval.  When did you join the LGPS, and how old are you now?  Reason I ask is if you joined before October 2006 you may have some R85 protections in respect of your pre 2008 accruals, and taking flexible retirement before 60 would incur employer strain costs.  Substantial strain costs are often a reason for refusal.

If approved, you can draw your full pension and then re-join the scheme in your new post.

littleD

Hi, sorry for the late response @Silvertabby I joined in 2001 and am 66 this year - thank you for the advice

Silvertabby

Then no employer strain costs to pay, and no reductions to any of your benefits, unless you go flexi before your 66th birthday (when any reductions to your CARE pension only would be minimal).

So, it's all down to your employer's approval.  Have you asked them yet?

If it is approved, then you can still (and should!) re-join the LGPS, even at 66.