Leaving employment

What employers need to do when an employee leaves, including for retirement.

Everybody in the LGPS has their own  personalised normal pension age (NPA). The member’s state pension age (SPA),is the point at which a pension is paid without reduction or increase. However there is flexibility for the member ro rake their pension earlier or later than their SPA.

Leavers with at least two years in the LGPS will have a pension entitlement, however they will not necessarily able to have an immediate payment.

What is a member's reasons for leaving?

They are leaving employment at or after normal pension age

Members are entitled to an immediate pension, due from the day following their last day of service unless the member requests to defer payment.

They are terminating the employment due to:

Follow guidance on the linked pages to make sure you supply the correct information, including the leaver information on i-Connect.

They are leaving employment after age 55 and want to take their pension

If the member has at least two years in the scheme and is  before normal pension age and none of the reasons mentioned above apply, you should supply full leaver details on i-Connect. Pension Services will advise members of their options.

The member can choose when to draw their pension but must give three month’s notice on to Pension Services. Services.

They are under age 55

If the member has at least two years in the scheme – there is an entitlement for a deferred pension but their pension will not be put into immediate payment. You should supply full leaver details on I-Connect.  

They are any age with less than two years in the scheme

Supply full leaver details on i-Connect.

They are leaving due to transfer of the service

TUPE; end of contractual outsourcing; amalgamations etc.

Employers must contact Pension Services before starting the process to fully assess the costs and liabilities.  The legal procedures to protect members pensions must be addressed.

They have opted out previously and are now leaving employment 

Please let Pension Services know about leavers who had previously opted out of the LGPS but who are not active members at their leaving employment date.

Required action for all leavers

Details for all leavers, whether or not entitled to an immediate pension, must be supplied on i-Connect.

You must complete the leaver section and the CARE pay details for all leavers.

Pension payments will be delayed if full leaver, ‘final pay’ and CARE pay details are not supplied.

Pension Services cannot assess benefits or advise the member of their options on leaving the scheme, unless employer has supplied confirmation of leaving, reason for leaving and full pay details.

Indication of timescales for a normal retirement

All retirements are different, but an ideal process would go as follows:

Step 1: Pension Services receives either retirement confirmation from employer or a member’s ‘Early payment request form’(giving the three months' notice).

Step 2: Pension Services awaits next i-Connect return which will contain all leaver details

Step 3: Within 10 working days of receiving all leavers pay and ‘final pay’ details, from the employers Pension Services will send  the member a provisional retirement declaration letter, to show the options available. If the member has not opted for paper, the letter will appear on their My Oxfordshire Pension account. The letter will allow the member to:

  • decide when they will receive the pension
  • decide the amount of tax free lump sum and pension
  • know how to use any AVC fund held with the Prudential, if applicable
  • supply all the personal details to ensure Pension Services hold a full pension record, and
  • ensure tax and pension savings details held and acted on.

Step 4: Payment date will depend on members response to the provisional options.