Redundancy - Frequently Asked Questions

What happens to my pension if I am made redundant?

If your employer makes you redundant or retires you in the interests of business efficiency and you are aged 55 or over, your benefits are payable immediately without reduction.

What happens if I am made redundant but under the age of 55?

If you are under the age of 55 at the point of being made redundant then unfortunately your pension cannot be released at this stage. Instead your pension is deferred for you within the Fund and can be released from age 60 at the earliest.

Will my pension be enhanced in any way?

At their discretion, your employer can award you with up to 10 years additional membership to improve your retirement benefits. They can also grant you up to £5,000 extra annual pension. These are discretions your employer can use if they so wish and they will publicise their policy on this for your information.

How do I obtain a redundancy quotation?

If you would like an estimate of your pension entitlement if you are made redundant please contact your employer directly. Unfortunately we are unable to provide redundancy figures directly to the employee.

How do I claim my pension if I am made redundant?

If you are aged 55 or over at the point that you are made redundant then your employer will be contacting us directly with confirmation of your leaving details. Once this is received we will calculate your pension entitlement and contact you to arrange for payment.

Can I defer payment of my redundancy pension until a later date?

No, we are obliged to pay your pension to you at the point you are made redundant.

When will my redundancy pension commence?

Your redundancy pension will be payable from the day after your employment ceases.

Am I entitled to a lump sum from the pension fund if I am made redundant?

If you have built up membership prior to 1st April 2008 you will automatically be entitled to a tax-free lump sum from the pension fund. If you joined the LGPS after 1st April 2008 you will not be entitled to an automatic lump sum, however you will have the option of converting some of your annual pension to purchase a lump sum.

Will I still be entitled to my pension if I take voluntary redundancy?

Yes, if you retire through either forced redundancy or voluntary redundancy then you will automatically be entitled to your pension if you are aged 55 or over.

If I am in receipt of my redundancy pension what happens if I become re-employed?

If you become re-employed your pension will be unaffected. We will continue to pay your pension in the normal way.