Planning to retire
What you need to do as you to prepare to draw your LGPS pension.
On this page
This page is for active members. If you are no longer a contributing member of the scheme but want to draw your deferred benefits, view our I want to retire page.
Life after work - video
When can I retire
The LGPS scheme does not have a ‘default’ retirement age. So, in most cases, you can choose when to retire and take your pension. You can take your LGPS pension anytime between 55 and 75 as long as you have been a member for at least two years.
Please note that the normal minimum retirement age will change from 55 to 57 on 6 April 2028.
Pension built up since 1 April 2014
Your pension built up since 1 April 2014 is payable in full from your Normal Pension Age. This is your State Pension Age with a minimum age of 65.
You can check your state pension age on the GOV.UK website.
Pension built up before 1 April 2014
The Local Government Pension Scheme (LGPS) changed from a final salary scheme to a career average scheme on 1 April 2014. If you were in the final salary scheme, your Normal Pension Age for these benefits is age 65, for almost all members.
Retiring early or late
If you were a member of the LGPS between 1/4/1998 and 30/9/2006, you may have some level of protection from the 85-year rule.
The 85-year rule is not a rule which allows you to retire early. It is a rule which means that you can take some of your pension benefits without them being reduced for early payment.
Retiring before your normal retirement age
If you choose to take your pension before your Normal Pension Age the pension you have built up in the scheme will normally be reduced, as it's being paid earlier. The earlier you retire, the greater the reduction.
Find out what the early retirement reductions will be.
Retiring after your normal retirement age
Your benefits will be increased if you draw them after your Normal Pension Age. Remember that your pension has to be paid by your 75th birthday.
All pension benefits, must be drawn at the same time, whether they were built up in the career average scheme or the final salary scheme. Most people have different retirement ages for the two parts of the scheme so this means that some elements of your pension may be reduced or increased while other elements are not.
View taking your pension on the LGPS website.
How to take your pension
When you take your pension, you can choose to swap part of it for a tax-free lump-sum.
You can find out how much this might be by:
1. Looking at your last annual statement. Find your latest statement by heading to My Oxfordshire Pension. Log in and select 'Documents', then 'My documents'.
or
2. You can get an estimate of your pension benefits on My Oxfordshire Pension. You can get projections for benefits:
- if you leave the scheme before you retire (active members only)
- if you retire or retire early (active and deferred members)
- your dependants will receive when you die (all members)
How to manage your pension online.
Lump-sum calculator
Use the LGPS lump sum calculator to work out how much lump sum you can take.
How to tell us you want to retire
You need to tell Pension Services:
- when you will be leaving
- how you want to take your pension.
If you are retiring early, you need to give us at least three months notice.
Retirement declaration form
Complete a Retirement declaration form to record your decisions and confirm your personal information. Return it to Pension Services. This form shows us your formal decision about how you want to draw your pension.
You should also use this form to give us the three months notice that we need to pay your pension early. Three months' notice is required even if your contractual or employment notice period is shorter than this.
Types of retirement covered by the form
The retirement declaration form is for all types of retirement.
However, if you are leaving because of ill health, redundancy or flexible retirement, you must speak to your employer before completing the form and choosing your options.
What your employer needs to do
Your employer must confirm to Pension Services that you are retiring. Your employer needs to provide:
- the reason and date for you leaving
- your pension entitlements
- your pay information.
Overview of the pension process
The process and timescales below can vary depending on the type of retirement you are taking. But, it does provide an overview of the pension process.
| Process steps | Actions and timescales |
|---|---|
| Step 1 | Pension Services receives your completed retirement declaration form and details from your employer about your leaving date, your pay and 'final pay'. This arrives by the 19th of the month after you leave. |
| Step 2 | Once both items are received, we will write to you or email you within 10 working days to confirm your pension details with you. |
| Step 3 |
We will set up payment of your pension or lump-sum. We will set up your pension payment for the next available pay date. Pensions are paid on the last working day of the month, but payroll cut off date is earlier in the month. |
Additional voluntary contributions (AVC) fund
You will have further options and decisions to make if you have been paying additional contributions (AVCs) . Please make sure you request full details of your choices before completing your retirement declaration form. Your retirement may take slightly longer to process.
Retiring due to ill health or redundancy
Provided you've been a member of the LGPS for two years; you can access your pension straight away if you:
- have to retire early due to ill-health (at any age)
- are made redundant (after age 55).
There will be no reductions to your pension, and it may even be enhanced. But, you cannot defer your pension.
Learn more about retiring due to ill health or redundancy.
How freedom and choice reforms affect your pension
From 6 April 2015 workplace pensions offer flexibility to people aged at least 55 in the way they access their pension savings.
As a member of the LGPS, you are a member of a public sector defined benefit (DB) scheme. The flexibilities introduced under 'Freedom and Choice' do not change how you can take your defined benefits from the LGPS.
There are, however, some indirect changes that will impact members of the LGPS who are considering transferring the value of their accrued LGPS defined benefit pension rights to a DC arrangement offering 'flexible benefits'.
Where to get further information
Contact your employer for questions about:
- your entitlement
- your pensionable pay.
Contact Pension Services for questions about:
- how your pension is calculated or paid.