Early payment of deferred benefits The Local Government Pension Scheme regulations changed on 14 May 2018 to allow payment of deferred benefits earlier, from age 55 instead of age 60. How might this affect your benefits? We’ve provided some examples of the typical reductions made to benefits when you claim them early. To give you an example, we have given the percentage reductions used for retirement ages of 55 and 58, so you can see how the reduction decreases the closer you get to your retirement age. To see how this might affect your benefits, use the latest pension figures from your latest deferred benefit statement and take off the relevant percentage reduction. Remember that these are only examples. Examples of reductions for early payment A – Membership up to 31 March 2008 only These examples show the typical reductions. You can see what effect waiting a little longer (three years in these examples) before taking your benefits has on the reductions. If you retire at age 55 Your pension is reduced by 22.2% Lump sum is reduced by 11.2% If you retire at age 58 instead Your pension is reduced by 9.9% Lump sum is reduced by 5.7% B – Membership between 1 April 2008 and 31 March 2014 only If you retire at age 55 Your pension is reduced by 37.7% If you retire at age 58 Your pension is reduced by 29% C – Membership before AND after 1 April 2008 If you retire at age 55 Your pension is reduced by 22.2% for membership up to 31 March 2008 and 37.7% for membership between 1 April 2008 and 31 March 2014 Lump sums is reduced by 13.7% If you left your post before 1 April 1998 To give you a rough idea of what to expect, based on the current figures on your benefit statement, and if you take your benefits before age 60, please see the reduction percentages in example A above. Can I get an estimate of my pension benefits? We are only able to provide an immediate estimate of your early payment of benefits if you are nearing retirement age. Very high demand for estimates means we are processing these in strict age order and the estimate could take up to three months to provide. After looking at the examples of the effects on your benefits, you may decide you would rather wait longer before asking for them to be brought into payment. You will receive a statement of your benefits each year, and when you get yours next you may wish to consider retiring early. If you need an estimate then, you can request one from us to see if you can afford to retire.