At a Glance
✓ Flexible retirement allows you to take your pension while continuing to work.
✓ You must be age 55 or over and have your employer's consent.
✓ Your benefits may be reduced if they are paid before your Normal Pension Age.
✓ You can rejoin the LGPS and build up new pension benefits.
Deciding to retire can be a major step. Flexible retirement gives you the opportunity to move gradually towards retirement by reducing your working hours or moving to a lower graded role.
With your employer's consent, you can start receiving the pension benefits you have already built up while continuing to work for the same employer.
What is the process?
If you are considering flexible retirement, the process will normally involve the following steps:
How does flexible retirement work?
Flexible retirement allows you to take your LGPS pension benefits and remain employed by the same employer on the basis of:
- Reduced working hours; or
- A lower graded position.
Who is eligible?
You must normally:
- Be age 55 or over.
- Have at least 2 years of LGPS membership or have transferred previous pension benefits into the scheme.
- Obtain your employer's consent to take flexible retirement.
If you joined the scheme on or before 31 March 2014, you only need 3 months' membership to qualify.
Do I need my employer's consent?
Your employer must consider every flexible retirement application on an individual basis.
When making a decision, they will consider:
- The impact of the application on service delivery.
- Potential costs to the employer.
- Their internal policy on flexible retirement.
For more information about your employer's policy, contact your Human Resources department or your employer directly.
What benefits will I receive?
If your application is approved, you will receive:
- Your LGPS annual pension.
- The option to exchange part of your pension for a tax-free lump sum.
If you were an LGPS member on or before 31 March 2008, you may be entitled to an automatic tax-free lump sum as part of the benefits built up to that date.
Will my pension be reduced?
Your Normal Pension Age (NPA) is linked to your State Pension Age, with a minimum age of 65.
If you choose to take your benefits before your NPA, they will normally be reduced because they are being paid earlier.
The closer you are to your NPA when you retire, the smaller the reduction will usually be.
Could the 85 Year Rule apply to me?
If you were an LGPS member between 1 April 1998 and 30 September 2006, you may have protection under the 85 Year Rule. The rules are complex and the level of protection depends on your individual circumstances.
Read more about the 85 Year Rule →
Can I continue contributing to the LGPS?
You can rejoin the LGPS after taking your flexible retirement benefits and start building up new pension benefits.
However, any protection under the 85 Year Rule will not apply to those new benefits.
Can I take part of my pension as a lump sum?
When you take your pension, you can normally exchange part of your annual pension for a one-off tax-free lump sum.
Commuting pension will increase the lump sum you receive at retirement, but it will reduce the annual pension paid to you for the rest of your life.