Councillor Members
The Local Government Pension Scheme (LGPS) is a statutory, funded pension scheme. Its benefits are defined and set out in law. This following information is for Councillors of the Tyne and Wear Pension Fund and Northumberland County Council Pension Fund.
2018 Amendment Regulations
Some changes have been made to the Scheme rules. The most significant amendment is a change in the early payment date for some deferred members.
With effect from 14 May 2018, deferred members who left the Scheme before 1 April 2014 are now able to elect to take their pension on a reduced basis at age 55. If you left the scheme between 1 April 1998 and 31 March 2014 you now have the flexibility to take your benefits anytime between age 55 and the eve of your 75th birthday.
The Amendment Regulations are published online at LGPS Regulations.
When can I elect to receive my deferred benefits under the amended regulations?
Deferred benefits become payable at age 65 (unless you opt to defer payment beyond that age), but you can choose to take payment from age 55. You do not need your former council's consent to take payment of your benefits from age 55 but they will normally be reduced (as detailed on page 14 of the Guide to the LGPS for Eligible Councillors booklet on this page) to take account of the fact that they will be paid for longer. If you do not contact us about payment we will not write to you until such time as your deferred benefits must be paid.
If you were contributing to the scheme at any time between 1 April 1998 and 30 September 2006 and you are a protected member, some or all of your benefits could be protected from the reduction. However, if you choose to voluntarily draw your pension on or after age 55 and before age 60, the protection will not automatically apply. Your former council can choose to allow the protection to apply - this is a discretion and you can ask your them what their policy is on this matter.
You can also ask to take payment of your benefits early on or after age 50 and before age 55, with your former council's consent. Your benefits would normally be reduced for early to take account of the fact that they will be paid for longer. If your benefits are paid before the age of 55 they will be subject to significant tax charges (in addition to normal income tax).
Your former council can agree not to make any reduction for early payment on compassionate grounds. This is a council discretion; you can ask your council what their policy is on this matter.
In addition, your benefits can be paid from any age in the event of ill health, without reduction.
Scheme changes from 1 April 2014
Changes to the rules for councillor pensions were contained in Regulation 26 of the Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 that were issued on 10 March 2014.
The changes mean that councillors in England will cease to be members of the Scheme at the end of the term of office that they were serving on 1 April 2014.
If you are a councillor or elected mayor in England who was a member of the LGPS on the 31 March 2014 you will continue to pay pension contributions and build up pension benefits in the LGPS. You will cease to be a member of the Scheme at the end of your current term of office (the term you were serving on 31 March 2014) unless you elect to opt-out of the Scheme or reach age 75 before the end of that term of office. You will not be permitted re-entry to the Scheme if you are re-elected (either immediately or subsequently) in the future.
If you were not a member of the Scheme on the 31 March 2014 then you will not be permitted to join the Scheme for the remainder of your term of office.
If you do choose to opt-out of the LGPS before the end of your current term of office and you were a member of the Scheme on the 31 March 2014 then you can elect to opt back into the Scheme for the remainder of your current term of office.
Membership cannot recommence if a councillor is re-elected into a new term of office after 1 April 2014.
For more information on the Scheme please view our booklet A Guide to the LGPS for Eligible Councillors[pdf - 549kb].
