Pensions Bitesize - July 2026 - What happens to my pension if I am made redundant?

What happens to my pension if I am made redundant?

If you are made redundant the immediate impact on your pension depends on your age.

If you are age 55* or older, and you have been a member of the scheme for at least two years, your pension will be paid immediately without the early retirement reductions which would otherwise apply if you were to take your pension voluntarily at the same date.

If you are at risk of redundancy then HR will request pension figures from the pensions team on your behalf to share with you, we cannot accept requests for redundancy quotations from members directly.

If you are under age 55*, and you have been a member of the scheme for at least two years, your pension will be deferred, meaning it will be held and will increase with the cost of living until it becomes payable from your Normal Pension Age.

Your Normal Pension Age is linked to your State Pension Age, however, you can choose to take your pension at any time from age 55* to 75. If you choose to take your pension before your Normal Pension Age it will be reduced, as it's being paid earlier. If you take it later than your Normal Pension Age it will be increased, as it's being paid later.

Alternatively, you can transfer your pension to another pension scheme, subject to qualifying criteria and satisfactory checks we are required to carry out on the new scheme.

*The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028.

If you have been a member of the scheme for less than two years, you will have the following options:-

• You can take a refund of the contributions you have paid, less 20% tax which will be deducted from your refund before it is paid to you.

•  You can transfer your pension to another qualifying pension scheme, providing you have at least 3 months membership. You will have a limited time in which you can elect to transfer.

Please visit the dedicated national LGPS member website, www.lgpsmember.org, where you can find out everything you need to know about the LGPS.