Types of retirement

As you have a deferred pension in the Local Government Pension Scheme (LGPS), you will receive an LGPS pension when you retire, payable for life.

Retirement types

The table below shows the different types of retirement from the LGPS.

Please note: The table mentions the current minimum retirement age of 55: by law, this is the lowest age you can start receiving your pension in good health. It doesn’t apply if you retire because of ill health. This minimum age is going up to 57 from 6th April 2028.

Normal retirement	Normal retirement age is between age 60 and your State Pension age. You can see your normal retirement age on the deferred pension statements that you receive from the Clwyd Pension Fund each year. If you start to take your pension at your normal retirement age, you will receive the full amount with no reductions.
Early retirement	You can start to take your deferred pension anytime between age 55 and normal retirement age. The pension will be reduced because you are taking it early. The earlier you go, the lower your pension will be. Your retirement pack will give you the details.
Late retirement	If you stopped paying pension contributions on or after 1st April 1998, you have the option to take your pension anytime between normal retirement age and age 75. The pension will be slightly higher because you are taking it later than expected. The later you go, the higher the pension will be. You must start taking your pension from age 75. If you stopped paying pension contributions before 1st April 1998, you must start taking your pension from normal retirement age.
Ill health retirement	You can take ill health retirement at any age but you would need to ask your ex-employer if your deferred pension can be paid to you on the grounds of ill health. They will ask an independent doctor to give a medical opinion on if you qualify for ill health retirement. They will consider, for example, whether or not you are permanently incapable of doing the job you used to have with them. They will then tell you if you can receive your pension straight away. If you qualify for ill health retirement, your deferred pension is payable to you for life. It is not reduced even if you are taking it early. However, the amount you receive is only based on the pension you built up while paying LGPS contributions.

If you are over 55 and opted out of paying contributions, you cannot receive your pension straight away. You have to leave the job you opted out of first, unless you are age 75.

Early retirement reductions

If you retire early, your benefits are reduced by a percentage for each year before normal retirement age:

Number of Years Paid Early	Reduction to Annual Pension	Reduction to Automatic Lump Sum
0	0%	0%
1	4.9%	1.7%
2	9.3%	3.3%
3	13.5%	4.9%
4	17.4%	6.5%
5	20.9%	8.1%
6	24.3%	9.6%
7	27.4%	11.1%
8	30.3%	12.6%
9	33.0%	14.1%
10	35.6%	15.5%
11	39.5%	Does not apply
12	41.8%	Does not apply
13	43.9%	Does not apply

Rule of 85 protection

Rule of 85: If you qualify for the Rule of 85 and retire early, some of your pension will not be reduced.

You only qualify for the Rule of 85 if you were paying pension contributions into the LGPS before 1st October 2006. You meet the Rule of 85 if:

Your age when you take your LGPS benefits + The number of years you paid pension contributions into LGPS for + The number of years since you stopped paying LGPS contributions = 85 or more

If you meet the Rule of 85, it will automatically apply if you start your pension from age 60.

If you meet the Rule of 85 and want to take your pension before age 60, you need your ex-employer's consent for it to apply. If your ex-employer does not consent, you can still take your pension but it will be lower than if the Rule of 85 had applied.

The Rule of 85 works in this way:

Birth Date	Pension built up on or before 31st March 2008	Pension built up between 1st April 2008 and 31st March 2016	Pension built up between 1st April 2016 and 31st March 2020	Pension built up on or after 1st April 2020
Between 1st April 1956 and 31st March 1960	Unreduced	Tapered: that is, partially reduced on a sliding scale	Tapered	Fully reduced
On or after 1st April 1960	Unreduced	Fully reduced	Fully reduced	Fully reduced

Salary protection

Salary protection: for more information about this, please go to the working out your deferred pension page on our website.

McCloud protection

McCloud underpin: for more information about this, please go to the McCloud remedy page on our website.