How are LGPS members affected?
As previously stated, the LGPS does not offer any option to unlock your benefits early under Freedom and Choice.
From April 2014 the LGPS regulations changed for active members so that the earliest voluntary retirement age is now age 55. If you chose to retire at this age your benefits would be subject to a percentage reduction based upon the period from your early retirement date to your normal retirement age.
The option to transfer your pension rights out of the LGPS and into a Defined Contribution scheme is available, but to do this you must have ceased active membership of the scheme.
If you do wish to investigate the option of a transfer the fund will calculate a transfer value, and if this amount exceeds £30,000 you will be legally required to obtain appropriate independent advice from an Independent Financial Adviser (IFA) at your own cost. The fund will require confirmation that this advice has been obtained before a transfer value can be paid. Your chosen IFA must also be listed on the Financial Services Register.
IMPORTANT: The fund is not able to offer our members any financial advice, but we strongly recommend that you seek independent advice before making any decision to transfer out for the purposes of unlocking your benefits early.
