Flexible retirement
Contents
Rules for Flexible Retirement
Flexible Retirement will allow a member of staff to take all or part of their accrued retirement benefits before Normal Pension Age (NPA) and continue to work (and to continue paying into the LGPS to build up further benefits).
NPA for member's in the 2014 scheme is defined as their state pension age, or age 65 if later.
In order to pay Flexible Retirement benefits, the following must apply:
- The member must be aged 55 or over
- You must have a published policy on Flexible Retirement, setting out the circumstances (if any) in which you would consent to it
- The member must either reduce their contractual hours or move to a lower graded post (or both) in line with your policy
- You must consent to the member taking Flexible Retirement.
Member Protections
Flexible Retirement benefits are calculated in the usual way and may be actuarially reduced for early payment.
Members retiring on Flexible Retirement grounds have full protection under the rule of 85 from age 55, therefore there may be a cost to you for allowing a member to retire under the age of 60.
Generally, there is no cost to you to allow Flexible Retirement on or after age 60.
You may consent to waive any reductions that would otherwise apply, but there would be a cost to you for allowing a member to retire with unreduced benefits.
What you need to complete
In order to obtain a Flexible Retirement quotation, please complete form LG29 and return it to lgps.forms@surreycc.gov.uk using Egress Switch.
Please indicate whether you require a standard Flexible Retirement quotation or wish to waive the reductions that might apply.
The member must take all of their pre 1/4/2008 benefits, but can choose to take none, part or all of their post 1/4/2008 benefits, providing your Flexible Retirement policy allows the member to do this.
Please indicate on the form if the member is NOT taking all of their benefits.
We will send you a quotation of the member's benefits and the costs that may be payable by you.
If the Flexible Retirement is agreed, please complete the retirement datafile (LG4) and return it to: pensions.technical@surreycc.gov.uk using Egress Switch.
If the member is remaining in the LGPS after the Flexible Retirement date, please provide details of the new reduced hours/grade employment. Depending on your organisation, this may be via a SAP return, iConnect or by sending us the new starter datafile via Egress Switch to pensions.technical@surreycc.gov.uk
Once the members pension is in payment, we will send you an invoice for the costs, if applicable.