An entitlement to deferred pension benefits arises when a member:
- Leaves Local Government employment or opts out of the LGPS with at least 2 years' qualifying membership or
- Has previous LGPS rights anywhere else in England & Wales and is not entitled to the immediate payment of retirement benefits.
Deferred benefits are calculated in the same way as retirement benefits but based only on membership built up to the date of leaving.
Since the introduction of the Local Government Pension Scheme (Amendment) Regulations 2006 the date from which deferred benefits become payable depends on a number of factors. This is because those regulations removed the 85-year rule with effect from 1 October 2006. Protection has, however, been given to benefits based on membership accrued prior to the change in regulations and to membership accruing after that date where the member will be 60 before 1 April 2020.