Early & Flexible Retirement

For retirements in the interests of business efficiency, this table gives the maximumadded years that may normally be granted based on continuous service.Length of ServiceAdded Years5 years – less than 10 years One10 years – less than 15 years Two15 years – less than 20 years Three20 years – less than 25 years Four25 years – less than 30 years Five30 years or longer Six and two thirdsAward added year’s membership is limited by scheme rules which are:• Award of added years requires a minimum of 5 years LGPS membership• Added years membership greater than current membership may not be offered• Added years membership must not result in membership exceeding 40 years• Added years membership must not result in membership exceeding what itwould been at age 6513BUAdditional Membership Types and CostsThe Council can provide additional pension scheme membership in one of two ways:added years or, in exceptional circumstances, augmentation. Additional membershipby augmentation will be at the same levels and restrictions as added years.• Added years are calculated as 1/80 th pension per year and 3/80 th lump sumper year.• Augmentation is calculated as 1/60 th pension per year with no lump sum.However the employee has an option to give up part of their pension for alump sum.Augmentation or added years both have the same effect for the employee, the keydifference being how this is funded by the Service. Essentially augmentation has to bepaid for in full to the pension scheme at the time of the redundancy. However,added years can be funded for the duration of the pension.23BUAdditional Membership by AugmentationDue to the way in which it is funded, providing additional membership byaugmentation is only likely to be considered in very exceptional circumstances. Forthis reason, it must be discussed in advance with Human Resources and PensionsSection before any further action is taken.Additional membership provided by augmentation instead of added years requiresadditional approval. The table at the end of this document lists the approval needed.Managing PeopleEarly RetirementFife Council September 2011 Page 7 of 19 ER11