Considering retirement

Are you considering retiring?

Your LGPS pension is payable in full from your Normal Pension Age which is linked to your State Pension Age (but with a minimum of age 65). However, you can choose to retire and draw your pension from the LGPS at any time from age 55 to 75, provided you have met the 2 years vesting period in the scheme. If you choose to take your pension before your Normal Pension Age it will normally be reduced, as it's being paid earlier. If you take it later than your Normal Pension Age it's increased because it's being paid later. You must draw your benefits in the LGPS before your 75th birthday.

 

Voluntary retirement from age 55 onwards

 

If you are considering early retirement from age 55 onwards, you should start by using our online portal mypension which provides the facility to run retirement estimates at your chosen retirement date and will take into account any early retirement adjustments. If after carefully considering all the information you decide to proceed, you will need to notify your HR department who will liaise with us to ensure the procedure for processing your retirement begins.

 

 

Please note: SYPA will only provide a retirement estimate within 6 months of your chosen retirement date.

 


Retiring at Normal Pension Age NPA (NPA is equal to your State Pension Age subject to a minimum age of 65)
Approximately two months before your Normal Pension Age we will make contact to ask if you are retiring. If you confirm your intention to retire we will send out a retirement estimate and provide a link to a guide to the LGPS Retirement Benefits booklet

Please remember if you are voluntarily retiring or retiring at Normal Pension Age you are required to give your employer your notice of resignation.

Ill health retirement/redundancy/flexible retirement/efficiency retirement
Upon notification from your employer confirming your approval for ill health/flexible/efficiency retirement, we will send out a retirement estimate with a link to Retirement Benefits Following that the procedure for processing your retirement will begin.

 

 

Any request for an ill health/redundancy/flexible retirement/efficiency quote must come via your employer.

 

Retirement after Normal Pension Age NPA (NPA is equal to your State Pension Age subject to a minimum age of 65)
Upon notification from you or your employer that you are retiring, we will send out a retirement estimate which includes a link to a guide to the LGPS Retirement Benefits booklet. Following that the procedure for processing your retirement will begin.

 

Please note: your retirement benefits must be brought into payment before age 75.



Customer Services 
You can contact us on 01226 772923 or customerservices@sypa.org.uk


Please note: SYPA staff are not registered to give any kind of financial advice. 



When we write to you with information about your retirement benefits we will advise you to read A guide to LGPS Retirement Benefits.

The booklet contains useful information about retirement benefits. Your letter will also include forms which require completing before we can process and pay your retirement benefits.

 

The forms that require completion are:

 

Retirement Benefits Form which includes:

 

   • Personal Details
   • Conversion Options
   • Bank/Building Society Details


Declaration Form which requires you to declare any other pensions you receive (excluding State Pensions, Spouses or Dependant's Pensions).

You will also be required to provide copy certificates, depending on your status, such as:

 

   • Birth certificate
   • Marriage/civil partnership certificate
   • Partner's birth certificate (if married or in a civil partnership) 
   • Decree Absolute/Final Order
   • Death certificate (if you are a widow/widower/surviving civil partner) 
   • Separation order (If separated by a court order)

 

Please note original certificates are NOT required.


Service standards
Once we are in receipt of all the necessary documentation to process your retirement, we will work to the standards set out in our Customer Charter.

AVCs
If you pay additional voluntary contributions (AVCs), upon receiving notification that you are retiring, we will request details of your AVC options from Scottish Widows, Prudential or Equitable Life.
 
Please note: we cannot pay your retirement benefits until we have received the funds from your AVC provider. This is to avoid potential over payments. To have a better chance of receiving your lump sum on or shortly after retirement we suggest that you stop paying your AVCs two months before your retirement date.

 

More information on retiring covering subjects such as the 85 year rule, early retirement reductions and exchanging pension for lump sum can be found on the national website for LGPS members at https://www.lgpsmember.org/thinking-leaving.php

 

Payment

You will receive a letter confirming the date of payment of your lump sum and when the payment of your pension will commence.

 

Your LGPS pension is a taxable income, but any lump sum is paid tax free. The amount of tax that you pay on your pension depends on your income and your personal circumstances.

 

Your first pension payment will be subject to basic rate tax unless we have received a P45 with your forms or from your employer, this means that you will be taxed at 20% or 40% dependent on the gross amount paid.  The HM Revenue and Customs Tax Office will then determine your tax code and send details to us, which will then generate a tax refund if applicable on the next payment made to you.