Local Government Pension two year qualification period query???

ant311266

I hope someone can help/advise.

I joined a Local Pension Scheme on 1st January 2025, working in a school (non-teaching role) receiving my first payslip on 17.1.25. There is a rule that you must be part of the scheme for a minimum of two years before you can access and draw a pension.

I would like to stop working at the end of December 2026. The final day of my school term is 18th December 2026 and I will receive my December payslip on either 17th or 18th of that month. That will equate to 24 pay slips.

I have contacted the pension scheme help line to check if my last day of work was the 18th, would I qualify to draw my pension. However, they were not that clear, using plenty of “we think” statements.

Can anyone help and let me know if a final day of work of 18th Dec would qualify me to draw my pension from January 2027.

Many Thanks

Isthisforreal99

To me, it's quite clear you need 2 years full service from 1st January 2025 so leaving the scheme on 18th December 2026 doesn't meet that criteria.

JGB1955

Hand in your notice w.e.f. 1 January 2027 and you should be fine.

DRS1

Am I wrong to think that even if you have less than 2 years qualifying service the LGPS will make a transfer payment available covering the full value of your benefits. You would only "lose" if you went for the refund of contributions option - which might happen if you didn't take the transfer within a specified time.

FIREDreamer

https://forums.moneysavingexpert.com/discussion/comment/82122933#Comment_82122933

My wife had 3 months local govt service. Offered a TV of £500 or a refund of £80 less tax. Took the £500 transfer value into a SIPP, obviously.

Teaandscones

best make your resignation wef from 2nd January just to be sure, and the 1st will be a bank holiday anyway

DRS1

Can anyone help and let me know if a final day of work of 18th Dec would qualify me to draw my pension from January 2027.

Just noticed the bit about drawing your pension from January 2027. From your user name I am guessing you will be 60 in January 2027. Is that right? The LGPS has a normal retirement date of 67 I believe. If you draw a pension from 60 it is going to be reduced by the early retirement reduction factor. That may not give you very much pension from 60.

You should also be aware that it may take some time to set up the pension. I think you are normally told to give them several months notice (3?). That may be more notice than you have to give to resign.

Silvertabby

You need 2 years calendar service to qualify for vested pension rights, so a leaving date of 18 Dec won't cut it.

If you can't delay your leaving date until 31 Dec or later then, yes you will be able to transfer your benefits to another pension scheme.