Flexible retirement allows a member, who is age 55 or over, to draw some, or all of their pension benefits while still working and paying into the LGPS.
If your employer agrees to flexible retirement, you can still receive your pay from your job on the reduced hours or grade and continue paying into the LGPS, building up further benefits in the Scheme.
To be eligible for flexible retirement, you must:
- be age 55 or over
- have your employer’s consent to take flexible retirement
- have completed more than two years in the scheme
- reduce your hours or grade in line with your employer’s flexible retirement policy
The Government has announced that the earliest age you can take your pension will increase from 55 to 57 from 6 April 2028. Find out more in the Pension age changes section
Do I have to take all my pension benefits if I take flexible retirement?
If your employer agrees to flexible retirement, then you must take:
- all of the benefits that relate to any membership built up before 1 April 2008
- any additional benefits bought under an added years contract which commenced before 1 October 2006
- any additional benefits from an Additional Voluntary Contributions (AVC) contract that commenced before 13 November 2001
You can choose to take:
- all, none or some of the benefits that relate to your membership from 1 April 2008 to 31 March 2014
- all, none or some of the benefits that relate to your pension built up from 1 April 2014
- any additional pension being purchased either through Additional Pension Contributions (APCs), Shared Cost APCs or Additional Regular Contributions (ARCs)
- any additional pension awarded by your employer
- any additional benefits bought under an added years contract which commenced on or after 1 October 2006
- any additional benefits from an AVC contract that commenced on or after 13 November 2001
Will my pension and lump sum be reduced if I take flexible retirement?
If you take flexible retirement before your Normal Pension Age, your benefits will normally be reduced because of early payment.
If you were a member of the LGPS on 30 September 2006, some, or all, of your benefits paid early could be protected from the reduction. This is known as the 85-year rule of protection. Find out more about 85-year rule and protection from pension reductions.
Your employer may, however, determine not to apply all or part of any reduction. You can ask them what their policy on this is.
Will my pension be reduced because of my earnings when continuing employment?
If you receive payment of your benefits on flexible retirement, then your benefits will not be subject to reduction or suspension for re-employment whilst you are in a job with the employer that allowed you to take flexible retirement.
However, if you receive a pension from us where some, or all, of your benefits were built up before 1 April 2014, and you are re-employed in local government or by an employer who offers membership of the LGPS, your pension may be affected.
In this case, you must tell us about your new employment, regardless of whether you join the Scheme in your new position or not. We will let you know whether your pension in payment is affected in any way.
What should you do if you want to take flexible retirement?
You must first speak to your employer as you will need their consent. Flexible retirement is at the discretion of your employer, and they must set out their policy in a published statement.