Redundancy
If you are made redundant or retired due to business efficiency, your local government pension is in safe hands. The information below will help you understand how it works.
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If you are made redundant or retired because of business efficiency, it’s important to know that your local government pension is in safe hands. Depending on your age and how long you have been a member in the scheme, you may be able to receive your full pension. The information on this page will help you understand the details.
I’ve paid into the LGPS for less than two years
If you have been a Local Government Pension Scheme (LGPS) member for less than two years and have been made redundant, you’ll usually have three options:
- Claim a refund of your contributions.
- Transfer your benefits to another pension.
- Delay your decision until you rejoin the LGPS or decide to do either of the above.
I’m aged 55 or over
If you are aged 55 or over and are made redundant, your full benefits (pension and any lump sum) may be paid to you immediately without any reductions for early payment.
To qualify, you must have been a member for at least two years, known as the vesting period.
If you have paid additional contributions (APCs, SCAPCs, ARCs), your extra pension may be reduced if you haven’t reached your Normal Pension Age.
Please note
The Government has announced that the earliest age you can take your pension will increase from age 55 to 57 from 6 April 2028.
I’m under age 55
If you are under age 55 and made redundant, your benefits won’t be paid to you immediately and will become deferred.
At retirement, you can choose to take your pension and any lump sum between the ages of 55 and 75. But your benefits will be reduced if you take them before Normal Pension Age, which is linked to your State Pension Age (usually over 65).
