Important Changes Affecting Earliest Date Deferred Members Can Draw Pension From
IMPORTANT CHANGES AFFECTING THE EARLIEST DATE DEFERRED MEMBERS CAN DRAW THEIR PENSION FROM
The LGPS regulations have been amended from 14 May 2018 and this has changed the rules around the early payment of deferred pensions for members who left the scheme before 1 April 2014.
- If you left the scheme before 1 April 1998 you can now request early payment from your 55th birthday rather than waiting until your normal retirement dateYour normal retirement date is the earlier of:
- your 60th birthday if you would have completed 25 years membership had you continued to be a scheme member, or
- the date falling between your 60th and 65th birthdays when you would have completed 25 years membership, or
- your 65th birthday
- If you left the scheme after 31 March 1998 and before 1 April 2014 you can request early payment at any time from your 55th birthday and you do not now need your former employer’s consent if you are under the age of 60
In each case, the pension and any automatic lump sum may be reduced for early payment.
These changes are intended to bring the position of deferred members who left the scheme before 1 April 2014 broadly into line with the provisions of the current regulations.
The amendments do not impact on a former employer’s discretion to pay pre 1 April 1998 benefits early on compassionate grounds or to waive early payment reductions for post 31 March 1998 deferred benefits.