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If you built up any pension in the LGPS before 1 April 2014, took payment of your pension and then returned to work in local government, or with an employer who offers membership of the LGPS, you must tell the LGPS fund that pays your pension about your new job.

You must do this whether or not you join the LGPS in your new job.

The LGPS fund that pays your pension will then let you know whether your pension in payment is affected in any way.

If you have only built up pension in the LGPS from 1 April 2014, took payment of your pension and then returned to work in local government, or with an employer who offers membership of the LGPS, you don’t need to inform the LGPS fund that pays your pension about your new job.

There will be no affect on your pension in payment, unless you are in receipt of a Tier 3 ill health pension benefit (see section below).

Ill health and re-employment

If you are being paid a Tier 3 ill health pension, your pension may be affected if you return to work. Therefore, you must inform your previous employer, who awarded you the ill health pension (whether in local government or elsewhere). They will let you know whether the payment of your pension should be stopped.

Flexible retirement and re-employment

If you have taken flexible retirement, your pension will not be subject to reduction or suspension whilst you continue to work for your current employer.

However, if you leave that employer and then return to work in local government, or with an employer who offers membership of the LGPS, and part of your pension in payment is in respect of pension you built up prior to 1 April 2014, you must tell the LGPS fund that pays your pension about your new job.

You must do this whether or not you join the LGPS in your new job. They will let you know whether your pension in payment is affected in any way.

You can continue to contribute to the scheme up to the age of 75, providing further benefits to your overall pension benefits, as long as your employer offers membership of the LGPS.

After re-employment

When your re-employment comes to an end or your earnings drop below your permitted to earn figure, you will start to receive your full LGPS pension again from the day after you cease the re-employment or the date of drop in pay.

Please note, the rule only applies to pre-2014 pension benefits, so if you leave after 31 March 2014, draw your benefits and then return to employment, you will not suffer a reduction.


The rules surrounding re-employment can be complicated so we recommend you contact Peninsula Pensions to obtain a permitted to earn figure before taking up re-employment to ensure you understand your options.

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