Redundancy and efficiency

The pension you have built up to date will be paid immediately, without early retirement reductions if:

  • you are made redundant or take voluntary redundancy, or you’re dismissed on efficiency grounds and
  • you are at least age 55 and
  • you paid into the LGPS for at least two years, including pension that you have transferred in

If you are made redundant or dismissed on efficiency grounds, your pension will not be paid if:

  • your LGPS membership, including pensions that you have transferred into it, is less than two years
  • you are under age 55
  • you had opted out of the LGPS before being made redundant

Redundancy or efficiency retirement from age 55

The pension that you have built up so far will be paid immediately - it won’t be reduced the way it would have been if you had chosen to retire early. Your pension must be paid; you cannot choose to defer it.

Your most recent pension statement shows the approximate value of your pension at 31 March, and this is what you might receive if you retire due to redundancy or efficiency. However, do not use your statement to make decisions – your employer may request a pension estimate for you if you ask them.

Your employer will give you a Retirement declaration form to fill in and send to Pensions Services. They will also send us what we need to calculate your pension, along with their authority for your retirement.

Once we have everything we need it will take around six weeks to start paying your pension. We will write to you with more information when we have calculated it.  

Additional contributions

If you pay additional contributions, the benefits from them will be paid along with your main LGPS pension.

  • AVCs will be paid immediately, according to your instructions. They have to be paid with the rest of your pension and processing them could delay your pension by up to eight weeks
  • APCs - the extra pension you have bought by your leaving date will be added to your main pension
  • ARCs - the extra pension that you have bought by your leaving date will be added to your main pension. The extra pension will be reduced if you retire before age 65, even if the rest of your pension is not reduced
  • Added years - you can choose to complete your contract before you retire. If you do not complete the contract, then the years and days of membership that you had bought by your leaving date will be added to your pension