This is the age at which you are able to draw your pensionable benefits without any reduction or enhancements.
Prior to the introduction of the CARE scheme on 01/04/2014, the Local Government Pension Scheme had a normal retirement age of 65 years old, however since this transition, the normal pension age is now in line with the members New State Pension age (with a minimum of 65 years old) which is linked to increases in life expectancy.
If you choose to take your pension before your Normal Pension Age it will normally be reduced, as it’s being paid earlier and therefore over a longer period. Protection for any pension earned up to 01/04/2014 means that you will still be able to draw any benefits relating to pre April 2014 service at 65 years old unreduced.
|Final Salary Scheme||CARE Scheme|
|Normal Pension Age||65||New State Pension Age|
A member has pension benefits in the Final Salary Scheme (pre 31/03/2014) and in the CARE scheme (post 01/04/2014) and retires on their 65th birthday.
The members normal pension age is 65 years old in the final salary scheme, whereas they have a New State Pension Age of 67
This members Final Salary (pre 1st April 2014) benefits would be payable unreduced as they have retired on their Normal Pension Age, whilst the CARE scheme benefits (Post 1st April 2014) would be reduced due to drawing their CARE scheme benefits 2 years earlier than their New State Pension Age.
If you choose to voluntarily retire before your Normal Pension Age your benefits will normally be reduced to take account of being paid for longer. Your benefits are initially calculated and are then reduced depending on how early you draw them.
The reduction is based on the length of time (in years and days) that you retire early i.e. the period between the date your benefits are paid and your Normal Pension Age, meaning that the earlier you retire, the greater the reduction.
As a guide, the current percentage reductions for retirements up to 13 years early are shown in the table below. Where the number of years is not exact, the reduction percentages are adjusted accordingly.
You can reduce or avoid the reductions by not taking immediate payment of your benefits on retirement i.e. by delaying payment until a later date. If you decide not to draw immediate benefits, these benefits can be drawn upon written request and must be paid by age 75.
|Number of years early||0||1||2||3||4||5||6||7||8||9||10||11||12||13|
|Lump Sum Reductions
(Male and Female)
If you carry on working after your Normal Pension Age you may continue to pay into the Scheme, accruing further pension benefits until you retire.
If you draw your pension after your normal pension age both your annual pension and lump sum will be enhanced to reflect the fact that it will be paid for a shorter time.
The amount of any increase will be based on how many years and days later than your Normal Pension Age you draw your pension benefits, these can be found below.
|Leaving Later Than NPA||Annual Pension||Lump Sum|