Accessing funds

JulietaEinin

Hi, I work full time, age 72 and a half. I'm in the LGPS and recently enquired with them about taking a lump sum. They have said the only way to do this is retire, voluntary retirement, transfer to a different role on a lower grade or reduce my working hours by 40% which is equivalent to only working 3 days (this was only 20% and changed recently). Are there any loop holes around this as I think it's unfair that I can't access my funds for another 3 years if I continue to work when my contributions cease. I'm also not ready to retire. Anyone know of any loopholes?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6677212/accessing-funds

Do you actually have any "funds" or are you referring to their normal LGPS (defined benefit scheme)?

daveyjp

A pension is to provide an income when you retire. If you don't retire from the role you generally can't access your pension.

However in an LGPS role you can retire and be re-employed, but not full time. Reduction in hours is a local decision and if you employer has decided 40% reduction is required for flexi retirement there isn't much you can do.

Silvertabby

No, there are no loop holes. By 'lump sum' are you hoping to take all your benefits as a one off lump sum, or do you just mean the retirement lump sum plus annual pension? How long have you been paying in to the LGPS, and do you have any other pensions (apart from the State pension) ?

Marcon

A pension is to provide an income when you retire. If you don't retire from the role you generally can't access your pension.

That used to be the case, but changed some years ago.

daveyjp

https://forums.moneysavingexpert.com/discussion/comment/82078127#Comment_82078127

The comment was regarding the OPs circumstances with an LGPS pension.

DRS1

Is switching to a 3 day week a non starter? Many people think that reducing your working hours/days in the lead up to full retirement is a good idea.

Albermarle

Normally with a DB pension ( like the LGPS) if you take the Tax free lump sum, then the regular monthly pension income has also to start.

So even if the scheme allowed you to take the pension whilst still working, you would not normally be able to just take the tax free lump sum on its own, without starting the regular taxable pension income at the same time.

JulietaEinin

Unfortunately only working 3 days is a non starter for me, also the service needs for the business won't allow for it. Its a real shame as I am not ready to retire, still plenty of get up and go. Only other option is to look at if any of the other teams has a vacancy of 2 days to see if I juggle it to fit the criteria. Thanks everyone for the replies

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/82078769#Comment_82078769

You can't take flexible retirement from one post with the intention of taking on the 'lost" hours with another team. You may - and I do stress may - get away with this if you take flexi, and then apply for an additional post later. But your employer would have to agree to this plan......

When do you intend to retire? If after 75 then, as the rules stand at the moment, you would be able to take your full pension benefits from 75, and carry on working the same hours. But you wouldn't be able to re-join the pension scheme, and this rule could change in the future.