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    • tony541
    • By tony541 13th Jan 19, 3:22 PM
    • 29Posts
    • 11Thanks
    tony541
    lgps pension, Can my partner take an early payout?
    • #1
    • 13th Jan 19, 3:22 PM
    lgps pension, Can my partner take an early payout? 13th Jan 19 at 3:22 PM
    Hi All,



    My partner has worked in care work for 15 years and 2 of those were full time. She is now 62 and has to wait until 66 to retire but would like to take a small sum out of the pension, say 3000, before she retires. Currently she only works 20 hours per week due to ill health and her gross wage is only some 12000.

    She has been told this is not possible by her pension department because it was a work base pension!?
    Is this correct advise?
    Thanks

    Tony
Page 1
    • rangersfc
    • By rangersfc 13th Jan 19, 3:30 PM
    • 67 Posts
    • 28 Thanks
    rangersfc
    • #2
    • 13th Jan 19, 3:30 PM
    • #2
    • 13th Jan 19, 3:30 PM
    Hello tony 541,
    Sorry, but I cannot provide the correct answer to your query. However, I would think the pension department would be in the best position to provide a full explanation. I suggest your partner pursues the matter with them.
    Regards
    mrwmartin
    Last edited by rangersfc; 13-01-2019 at 3:31 PM. Reason: spelling
    • hyubh
    • By hyubh 13th Jan 19, 3:41 PM
    • 2,345 Posts
    • 1,797 Thanks
    hyubh
    • #3
    • 13th Jan 19, 3:41 PM
    • #3
    • 13th Jan 19, 3:41 PM
    My partner has worked in care work for 15 years and 2 of those were full time. She is now 62 and has to wait until 66 to retire
    Originally posted by tony541
    Minor point, but the part of her pension that relates to pre-April 14 membership in the scheme will have a normal pension age of 65 not 66. Also, if she quit her job, she'd be free to take the pension immediately, with an actuarial reduction.

    but would like to take a small sum out of the pension, say 3000, before she retires. Currently she only works 20 hours per week due to ill health and her gross wage is only some 12000.

    She has been told this is not possible by her pension department because it was a work base pension!?
    Is this correct advise?
    In a nutshell, yes - the normal situation for a DB pension like your partner's is that it's all or nothing when drawing it. However, given it's LGPS, has your partner inquired about a potential flexible retirement with her employer? This explanation is from Kent, but the rules are common across all LGPS funds:

    https://www.kentpensionfund.co.uk/local-government/current-member-paying-in/retirement-in-the-lgps/flexible-retirement
    • xylophone
    • By xylophone 13th Jan 19, 3:45 PM
    • 28,008 Posts
    • 16,893 Thanks
    xylophone
    • #4
    • 13th Jan 19, 3:45 PM
    • #4
    • 13th Jan 19, 3:45 PM
    Your partner has a defined benefit occupational pension to which she currently contributes.

    She cannot take a pension commencement lump sum from the pension until the pension commences payment.

    You mention ill health but it appears that she is not ill enough to be considered for ill health retirement.

    Is flexible retirement a possibility?

    https://www.lgpsmember.org/tol/thinking-leaving-when.php
    • atush
    • By atush 13th Jan 19, 4:29 PM
    • 17,419 Posts
    • 10,953 Thanks
    atush
    • #5
    • 13th Jan 19, 4:29 PM
    • #5
    • 13th Jan 19, 4:29 PM
    he works reuduced hours due to ill health?

    If so, she should first look into ill health retirement as it could give her better terms than just early retirement. There might also be voluntary retirements proposed in her area.
    • tony541
    • By tony541 13th Jan 19, 7:10 PM
    • 29 Posts
    • 11 Thanks
    tony541
    • #6
    • 13th Jan 19, 7:10 PM
    • #6
    • 13th Jan 19, 7:10 PM
    Hi all,



    Thanks for all the replies, something to chew on.
    We weren't aware of 'hyubh's
    '' but the part of her pension that relates to pre-April 14 membership in the scheme will have a normal pension age of 65 not 66.
    So can we assume she can take a pension at age 65 for all the years before April 14?
    Unfortunately there doesnt seem to much volunteer retirements going around at the moment but fingers crossed. The sad thing is she enjoys her job.
    Thanks again.
    Tony
    • AlanP
    • By AlanP 13th Jan 19, 8:37 PM
    • 1,397 Posts
    • 1,045 Thanks
    AlanP
    • #7
    • 13th Jan 19, 8:37 PM
    • #7
    • 13th Jan 19, 8:37 PM
    Hi all,



    Thanks for all the replies, something to chew on.
    We weren't aware of 'hyubh's
    '' but the part of her pension that relates to pre-April 14 membership in the scheme will have a normal pension age of 65 not 66.
    So can we assume she can take a pension at age 65 for all the years before April 14?
    Unfortunately there doesnt seem to much volunteer retirements going around at the moment but fingers crossed. The sad thing is she enjoys her job.
    Thanks again.
    Tony
    Originally posted by tony541
    Unfortunately the all or nothing aspect still applies so pre and post 2014 cannot be split.
    • hyubh
    • By hyubh 13th Jan 19, 9:08 PM
    • 2,345 Posts
    • 1,797 Thanks
    hyubh
    • #8
    • 13th Jan 19, 9:08 PM
    • #8
    • 13th Jan 19, 9:08 PM
    We weren't aware of hyubh's 'but the part of her pension that relates to pre-April 14 membership in the scheme will have a normal pension age of 65 not 66.'
    So can we assume she can take a pension at age 65 for all the years before April 14?
    Originally posted by tony541
    No, as it's treated as just a different element of the same pension. However, if she drew the pension at 66, this element would be slightly increased for being taken late. Conversely, if she drew the pension at 65, only that part which related to membership from April 2014 onwards would be reduced.
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