Human Resources
Early Retirement
Options
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Pension schemes offered at Brookes
• Local Government Pension Scheme (LGPS) for support staff
• Teachers’ Pension Scheme (TPS) for academic staff
• Universities’ Superannuation Scheme (USS) for new staff who
were USS members at their previous institution
• University retirement age is 65 for all but scheme retirement
ages differ
• Schemes offer early retirement and flexible/phased
retirement options
• Flexible/phased retirement allows members to draw some or
all of their pension benefits, carry on working in reduced
capacity and carry on building up pension benefits.
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LGPS retirement options
•
Normal retirement age is 65
•
Age 55 to 59 – Members can only retire with employer permission
•
Age 60 to 64 – Members can retire without employer permission
•
Any pension paid before 65 will be actuarially reduced if 85 year rule
not fulfilled:
• If service + age = 85, member can retire with no reduction to
benefits.
• 85 year rule only applies to those who will be 60 on or before 31st
March 2016 and will have fulfilled the rule by that date.
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LGPS retirement summary
85 year rule fulfilled
85 year rule not fulfilled
Age 55 to 59
•Employer permission
required
•Cost to employer
•Benefits unreduced
•Employer permission
required
•Potential cost to employer
•Benefits will be reduced
Age 60 to 64
•Employer permission not
required
•No cost to employer
•Benefits unreduced
•Employer permission not
required
•No cost to employer
•Benefits reduced
Age 65 or
over
•Normal retirement age –
no reduction to benefits
•Normal retirement age – no
reduction to benefits
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TPS retirement options
• Normal retirement age:
• 65 for those who joined from January 2007 onwards
• 60 for those who joined before January 2007
• Members have the right to retire from age 55. Benefits will be
actuarially reduced if taken before normal retirement age.
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USS retirement options
• Normal retirement age is 65
• Age 55 – 59
• Members can only retire with employer permission.
Employer must pay the cost
• Age 60 – 65
• Members can retire without permission.
• With consent, member can sometimes receive unreduced
pension
• Consent will not be “unreasonably withheld”
• Individual estimates can be arranged via HR.
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Flexible/phased retirement options - LGPS
• From age 55 with employer permission
• Employee must reduce either hours of work (by at least
20%) or grade
• As with early retirement, can result in an employer cost
• Benefits will be reduced, unless 85 year rule fulfilled
• Pension will not be subject to abatement if employee is reemployed i.e. no restriction on earnings.
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Flexible/phased retirement options - TPS
•
From age 55
•
Salary must reduce by at least 25% for at least 12 months
•
Benefits reduced if retirement before normal retirement age
•
Staff choose to take up to 75% of pension at phased retirement date
•
Members can take phased retirement twice before final retirement
•
Pension will not be subject to abatement if employee is re-employed
i.e. no restriction on earnings.
•
USS - no provision for flexible retirement
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Final salary - LGPS
• The pensionable salary received in the last 12 months of
employment before the date or retirement.
• Or 1 of the previous 2 years if this is higher.
• If you downgrade or move to a job with less responsibility
with your employer in your last 10 years, you have the option
to have your benefits based on the average of any 3
consecutive years in the last 10 years (ending on a 31
March).
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Final salary – TPS & USS
• TPS
• Best 3 year average in the last 10 calendar years, revalued in
line with RPI.
• The pensionable salary received in the last 12 months of
employment before the date or retirement.
• Pensionable salary may be restricted if there is a salary increase of
10% (in addition to standard increases) in the last 3 years before
retirement
• USS
• Highest revalued salary in the last 3 years
• Highest 3 year average in the last 13 years
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Further information
• Discuss any potential change of hours with your line manager
• LGPS
• Contact HR for an estimate of benefits
• TPS
• Use the scheme website www.teacherspensions.co.uk to
see your benefits statement
• Use the online calculators to estimate your benefits
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