What is the 85 year rule?

The 85 year rule is where we take a member’s age and qualifying years of service in the Scheme, and if it comes to 85 or over at the point they wish to take their benefits, and they’re aged over 60, it means they may be able to take their benefits unreduced at that point.

Can I retire early due to ill health UK?

Defined contribution schemes often give you your benefits early in the case of ill health, irrespective of age. You may be given the option to take your benefits as a pension, or a tax-free lump sum, depending on your circumstances. If you are over 75 at the time then your pension will be taxed in the normal way.

Is Lgps a good pension?

The Local Government Pension Scheme is often viewed as one of the most valuable financial rewards of your job providing you with a secure, Government backed, guaranteed income, when you retire.

Can I take my council pension at 60?

You can take your LGPS pension at any time from age 55 to 75, as long as you have met the two-year vesting period.

What happens if I have to retire early due to ill health?

Ill health benefits can be paid to you at any age. Your benefits will not be reduced because they are being paid early. In some cases, your pension will be increased to make up for your early retirement. The level of benefits depends on how likely you are to be capable of gainful employment after you leave.

How long does ill health retirement take to process?

An initial decision can be made in 4 weeks, but may take longer. If you are happy with the decision, you must complete an AW8 form to claim your pension benefits. Once the pensions agency has received the AW8 form it will usually take approximately 8-12 weeks before you will receive your pension.

Does McCloud Judgement mean I can retire at 60?

All terms and conditions are fully protected. This means that if you have 1995 Section benefits, for example, that you can still retire and draw these at 60 without any reduction for early payment applying.

Will the McCloud Judgement increase my pension?

Most members are unlikely to see an increase to their pension, and where an increase is applied, it is likely to be small. This is because most members will build up a higher pension in the career average pension scheme than they would have under the final salary scheme.

Is it better to take a higher lump sum or pension?

Lump-sum payments give you more control over your money, allowing you the flexibility of spending it or investing it when and how you see fit. Studies show that retirees with monthly pension income are more likely to maintain their spending levels than those who take lump-sum distributions.

Is the LGPS a final salary scheme?

The LGPS changed from a final salary scheme to a career average scheme on 1 April 2014.

Can I take my LGPS pension at 55 and still work?

You can take your LGPS pension at any time from age 55 to 75, as long as you have met the two-year vesting period. You must take your pension by age 75. If your employer agrees, you can even take your pension without leaving your job – this is called flexible retirement.

What happens if I retire early due to ill health?

Can I be forced to retire due to ill health?

Your employer is not allowed to suggest ill health retirement as a way to get you to leave the company. This could be disability discrimination because ill health retirement is your choice. Your employer should make reasonable adjustments to allow you to work if you feel able to.

Will the McCloud Judgement benefit me?

In short yes. You will have pension benefits in the 1995 (or 2008 Section) and potentially benefits in the 2015 Scheme (at least in respect of all service from the 1 April 2022).

What is the McCloud remedy?

The McCloud remedy removes the age discrimination that was judged to have arisen in public service pension schemes, including the NHS Pension Scheme. The discrimination resulted from allowing older members to remain in their legacy (1995 or 2008) scheme rather than being moved to the 2015 Scheme when it was introduced.

How much will I lose if I take my pension at 55?

Taking money out of your pension is known as a drawdown. 25% of your pension pot can be withdrawn tax-free, but you’ll need to pay income tax on the rest. You can choose whether to withdraw the full tax-free part in one go or over time. This is the most flexible option.