The normal pension age for the Local Government Pension Scheme (LGPS) is equal to the individual employee’s state pension age (but not less than age 65).
The normal pension age for the new Scottish Teachers’ Pension Scheme (STPS) is equal to the individual employee’s state pension age (but not less than age 65). However, the normal pension age for teachers not in the new STPS i.e. those remaining in the Scottish Teachers’ Superannuation Scheme (STSS) will be either 60 or 65, depending on when they joined. It should be noted that the STSS schemes are now closed to new entrants, and only those who have full protection or are still in tapered protection will be active members.
An employee who is over their state pension age (which is specific to each employee depending on their date of birth) can continue to contribute to the LGPS and accrue benefits until the day before their 75th birthday (assuming they remain an active member of the scheme). The same applies to the STPS.
Employees reaching their state pension age will not pay national insurance contributions beyond that age but will continue to pay income tax. The Payroll Section will write to each employee just prior to their state pension age to ask them for a copy of their birth certificate, to enable their exemption from the payment of national insurance contributions, where the employee wishes to work beyond their state pension age.
When an employee ultimately chooses to retire, the Council will notify the relevant pension scheme of this in order to arrange for the commencement of payment of their pension benefits.
1. Where an Employee Changes Their Mind about Retiring
If an employee indicates that they may wish to retire at a point in the future but has not yet given formal notice of their retirement in writing, they can change their mind and continue in employment. If the employee changes their mind about retiring after having given written notice, the Council is not obliged to accept the withdrawal of their notice and can require the employee’s retirement to go ahead. This will depend in part on the arrangements already put in place for the post and on workforce planning requirements.
2. Flexible Working Options
There are flexible working options available to all employees regardless of whether they are pension scheme members. These include compressed working week, term time working, part-time working, annualised hours and home, remote and tele-working. These options require management approval with details in the Smarter Working guidance.
Click here to return to the main Retirement page
Add a ‘Like’ and/or a ‘Rating’ below to indicate how useful you found this page