Voluntary Retirement

What do I do when a scheme member leaves employment and is retiring?

For any member who is retiring, it is the responsibility of the employing authority to provide details by completing the ePen3 leavers form

There may also be a variety of supporting documentation required.

What happens if a member wishes to return to Local Government employment soon after retiring and claiming their Local Government Pension?

Firstly, it is important to establish that it has been a genuine retirement. If a member wishes to draw on their pension, and yet wish at some time in the future to become re-employed in Local Government it should be emphasised that as long as the original retirement and the second position are considered quite separate employments, there is no reason why the first pension will not be paid.

To sum up, if a member genuinely resigns, retires and leaves employment and subsequently gains further employment, through the normal selection procedures, they are able to receive, or continue to receive, their pension. However, a break in service, or a contractual change in hours or grade, does not constitute a re-employment.

Caution is therefore advised, as the pension will not be released if the Pension Section does not feel that these conditions have been met.

Can a member receive their pension without leaving employment?

In order for a member to receive their pension benefits in respect of their employment, they must, in most circumstances, actually leave that particular employment in order to do so. If this is indeed the case, then the pension can be paid. However, there is a facility for an employer to allow a member to receive their pension without leaving that employment, by exercising the Regulation which allows  flexible retirement.

Can an employer allow a member to retire voluntarily with an unreduced pension?

A member of the pension scheme who retires voluntarily and receives their pension between the ages of 55-65 will have that pension benefit reduced to some extent. These reductions could be significant but are merely an exchange with the pension fund for early payment.

The employer will need to determine a policy on whether their organisation will waive early retirement reductions, whether that be in full or partially, and if so in what circumstances. This would therefore mean that the employer would pay capital costs to the pension fund to make up the difference. Please check with your employer on their individual policy, however the majority of our employers do not waive reductions on a regular basis, and members must draw reduced benefits if they wish to have early access to the benefits.