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Retirement Age

Volume 453: debated on Monday 27 November 2006

To ask the Secretary of State for Communities and Local Government which local authorities have mandatory retirement ages. (102390)

Local authorities are responsible for their own employment practices. Since 1 October 2006 all local authorities have been required to comply with age discrimination legislation, under which an employer may set a retirement age normally no earlier than age 65.

The Local Government Pension Scheme in England and Wales has a normal retirement age, against which pensions are calculated and become payable, of 65 years. Where a member remains employed by his authority beyond age 65, payment of pension will be delayed and accrued pension rights can be actuarially enhanced. A member who chooses to cease employment earlier than age 65 can elect to draw his pension at any time after reaching age 60, or after reaching age 50 if his employer consents. The pension would normally be subject to actuarial reduction in these circumstances. There are also flexible retirement arrangements which allow employees, after reaching age 50, to draw pension subject to the consent of their employer, where they have agreed a change to their contractual conditions which results in a reduction of pay. Local authorities are required to have a policy dealing with the circumstances in which they may allow early release of pension.