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Deferred benefits

If you leave the Local Government Pension Scheme and have any of the following:

  • at least two years' membership (for people who joined on or after 1 April 2014) or
  • more than three months' membership (for people who joined before 1 April 2014) or
  • transferred in any other non-refundable pension rights or
  • other LGPS benefits elsewhere (for example, deferred refunds, deferred benefit, pension credit awarded as a result of divorce, pension in payment, hold an ongoing concurrent employment) or
  • have any ongoing concurrent LGPS membership

you will be awarded deferred LGPS benefits which will be paid when you reach normal pension age which is your new state pension age. Find your state pension age.

Your deferred benefit will be the LGPS pension benefits you have built up at the point of leaving the scheme.

The pension section will write to you with details of your deferred benefit after you leave the scheme and each year after that you will receive your annual benefit statement showing the new current value.

Deferred benefits increase using an index determined by over-riding legislation.

In order for us to keep you informed of the value of your deferred benefit and in order that we do not delay payment due to you, please make sure you tell us if you move address (see the change of address form in the related documents below).

When are deferred benefits paid?

Your deferred benefits are normally payable from your normal pension age which is your new state pension age, although they can be paid earlier. Find your state pension age.

Early payment of deferred benefits due to permanent ill health

You can apply for payment of your deferred benefits at any age, without reduction if, because of your health, you would be permanently incapable of the job you were working in when you left the LGPS and you have a reduced likelihood of being capable of any gainful employment within three years of applying for the benefit or by normal pension age, whichever is the earlier.

Early payment of deferred benefits at your request

You can also request early payment of your deferred benefits from age 55 onwards.

If you choose to draw your deferred benefits before normal pension age, your benefits may be reduced to take account of their early payment and the fact that your pension will be paid for longer. How much your deferred benefits are reduced by depends on how early you draw them.

The reduction is calculated in accordance with guidance issued by the Secretary of State from time to time.

The reduction is based on the length of time (in years and days) that you retire early i.e. calculated as the period between the date your benefits are paid and your normal pension age. For more information on this, please see our When can I retire? page.

Your former employer can agree to waive any reduction on compassionate grounds. You can ask them what their policy on this is.