Local Govt Pension - age for payment

bioboybill wrote: »

LGPS pension can be taken from 55.

Only for those who were contributing members after April 2014.

In Op's case, the earliest he can take this pension is indeed 60. The even better news is that with his dates of service his pension will be paid in full - ie, no reductions for early payment.

parcival wrote: »

Thank you Silvertabby (I was hoping you would reply). This is indeed good news.

I was of course aware that I could take it from age 55 with a reduction. It's not life changing money but is still most welcome.

Not in your case, as you left before 2014.

The paperwork talks about commuting part of the pension for a higher lump sum at a ratio of 12 : 1. Does the scheme have a facility to forego the lump sum for a higher annual pension?

It depends. Inverse commutation (giving up part of your lump sum for a bigger pension) ended in 1997, and your records had already been deferred by then. I know that LGPS rules should be uniform, but different Local Authorities can and do interpret some guidelines differently. Can you remember getting a letter about 20 years ago (I know, I know!) asking if you wanted to keep the old rules (inverse commutation only) or switch to the new rules (no inverse commutation, but can opt to give up some pension in return for a bigger tax free lump sum)?

In hindsight, most of the letters which were returned opted for retention of the old rules - because a lot of people assumed that old rules would be better for them than the new rules - then, when they came to retire, they kicked off because they couldn't commute in order to take the 25% tax free cash.

I would suggest that you ring your LGPS provider to ask if you can use inverse commutation - but be sure to speak to one of the older, more senior staff members as the youngsters are unlikely to know what you are talking about!