What happens when I retire?

Can I retire before the normal retirement age?

Yes. You must have at least 2 years scheme membership, which may include a transfer of previous pension rights into the Warwickshire Pension Fund.

You must leave employment voluntarily, between the ages of 55 and your state pension age to receive your benefits, but they will be reduced to take account of your early retirement.

How can I get an estimate of my early retirement benefits?

Our website offers a self-service facility for members to view their pension record and perform individual benefit calculations securely. You can amend certain dates and use a more accurate pay figure if the one we hold is not up to date.

What do I need to do if I decide to leave my employment and receive my pension benefits early?

You must inform your line manager and your employer's Human Resources department, that you wish to terminate your contract of employment and receive early payment of your LGPS benefits.

You and your employer will agree a date that your contract of employment will be terminated. Once you know this date you should contact us (by email or letter) to confirm this date and that you want to receive payment of benefits.

Payment of your pension benefits

For Warwickshire Pension Fund to process your pension benefits and arrange payment the following must happen:

Action by your employer

Your employer must provide leaver details, which includes your salary details for the current year up to the date your contract is terminated.

Please note: due to the timing of your employer's payroll, your employer may not be in a position to submit a completed leaver form until approximately 6-8 weeks after you have left employment.

Action by Warwickshire Pension Fund

On receipt of the leaver details from your employer, we will arrange the following:

If you have not told us you want to receive early payment of your benefits

• We will write to you detailing the pension options i.e.:

  • the option to defer your pension to a later date
  • transfer out
  • the freedom and choice option

If you have informed us you want to receive early payment of your LGPS pension

• We will arrange the following:
  • provide you with your pension options (you must complete the pension option forms and return to the Fund)
  • bank details form for you to complete and return to the Fund
  • lifetime allowance declaration to be completed and returned to the Fund. This is required by HM Treasury and Customs. This form will ask you to provide details of all other pensions (except state pensions), you are in receipt of or due to receive in the future
  • copy of your birth certificate, plus, if applicable, copies of your marriage, civil partnership certificates and spouse's birth certificate to be forwarded to the Fund
  • nomination of beneficiary form for the lump sum death grant form to be completed and returned to the Fund
  • general data protection regulations consent form to be completed and returned to the Fund

Please note: from receipt of the completed leaver form to the Fund issuing the above documentation you should allow 10 working days.

Action by you

You must complete and sign the required forms and return to the Warwickshire Pension Fund in the envelope provided, along with your certificates.

Payment of your monthly pension and lump sum

On receipt of your signed and completed forms together with the relevant birth certificates etc., the Fund will:

• arrange payment of your tax-free pension lump sum into your bank or building society. Please allow 13 working days from the date the Fund receives your completed forms
• arrange payment of your monthly pension which will take place on the next available pay date, together with any arrears of pensions
• write to you confirming the tax-free pension lump sum paid into your bank or building society, together with information about payment of your monthly pension

Overall timescales

As you will note from the date you leave your employment, there are several steps/ actions that need to take place before you will receive payment of your monthly pension and tax-free lump sum.

You should allow between 2 – 3 months for the process to be completed.

Under the pension regulations, if payment of your tax-free lump sum is made more than one month after your retirement date, the Fund will pay interest of 1% per annum above the Bank of England base rate calculated for each day the lump sum is delayed.

The monthly pension attracts no interest for late payment. The exception to this is if the annual pension is not paid within the first year following your retirement date.

Please note: your monthly pension is deemed to be taxable income and will be subject to tax deductions in accordance with the Her Majesty's Customs and Revenue rules.