Abatement (Reduction of pension)

If you are receiving an LGPS pension and then return to work with an employer who offers membership of the LGPS, you do not usually need to inform Pension Services about your new job (unless you are in receipt of CAY benefits as listed below). There will be no effect on your pension in payment, unless you are receiving a tier 3 ill health pension benefit.

A tier 3 ill health pension is stopped if you take up "gainful" employment, so your pension may be affected if you return to work. Therefore, you must inform the employer who awarded you the ill health pension if you start any new employment. They will let you know whether your pension payments should stop.

In the past, the pension of some members was reduced (abated) when they started a new employment. If this applies to you, please contact Pension Services.

Compensatory Added Years (CAY)

If you start a new job where you are eligible to join the LGPS and you were awarded Compensatory Added Years (CAY) by your former employer, which is paid with your LGPS pension or as a separate pension, there may be an abatement or clawback of these added years.

This depends on whether your total service exceeds the amount permitted. If you start a new job in the LGPS, then you should seek further advice from Pension Services concerning the CAY part of your pension.