How and When Can You Take Benefits

As a deferred member of the Local Government Pension Scheme (LGPS), your pension benefits remain securely with Lothian Pension Fund until you decide to take them. You have flexibility in when you start receiving your pension. But timing can affect the amount you get.

You can choose to take your LGPS pension:

  • Any time between the ages 55 and 75
  • At your Normal Pension Age (NPA) – the age at which you can take your pension without early retirement reductions.

Your NPA depends on when your pension was built up:

  • From 1 April 2015 – your NPA is the same as your State Pension Age (SPA), with a minimum of 65.
  • Before 1 April 2015 – your NPA is 65.

You can find your SPA using the Government’s calculator.

You must take all your LGPS benefits at the same time unless they are held in a separate Additional Voluntary Contribution (AVC) arrangement.

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Taking Your Benefits Early

You can take your pension from age 55, but if you do so before your NPA, your benefits will normally be reduced to reflect that they will be paid for longer.

The earlier you retire, the larger the reduction. Reductions are calculated using factors set by the Government Actuary’s Department.

 
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Taking Your Benefits After NPA

If you delay taking your pension beyond your NPA, your benefits will be increased because they’ll be paid for a shorter time.

You must take your pension by age 75 at the latest. 

 

 

Your protection depends on when you were born and when you joined the scheme:

Members born before 1 April 1960 who joined before 1 December 2006
Members born on or after 1 April 1960 who joined before 1 December 2006
Members who joined on or after 1 December 2006
  • All benefits built up to 31 March 2020 are protected.
  • Benefits from 1 April 2020 onwards will be reduced if taken before your SPA.
  • Benefits saved up to 31 March 2008 are protected
  • Benefits accrued from 1 April 2008 to 31 March 2015 will be reduced if taken before age 65.
  • No Rule of 85 protection applies
  • Benefits built up to 31 March 2015 will be reduced if taken before age 65
  • Benefits from 1 April 2015 onwards will be reduced if taken before your SPA. 

Additional Voluntary Contributions (AVCs)

If you paid into an AVC arrangement with Prudential or Standard Life, you can:

  • Take them from age 55 separately from your LGPS pension
  • Use them with your LGPS benefits (for example, to boost your tax-free lump sum or buy extra pension)
  • Transfer them to another pension provider.

Before accessing AVCs, we recommend that you speak to Pension Wise for free, impartial guidance.

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