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After several years in the making, the Government has now published the Finance Bill 2021-22, which aims to increase the normal minimum pension age (NMPA) for Scheme members from 55 to 57 with effect from 6 April 2028; for reference, the NMPA is the earliest point a member, in good health, can claim their pension.

The increase in the NMPA will apply to all pension schemes, though some exceptions will apply. These include:

  • Members can retire on ill health at any age (providing they meet the relevant criteria)
  • Members with a protected pension age of less than 55; this includes former Civil Servants who were compulsorily transferred to the Environment Agency on 1 April 1996

In addition, the Government has confirmed that for pension schemes that already allow for members to claim their pension benefits from age 55 without their employer’s consent (like the LGPS) can continue to do so. However, this will only apply to people who were members in their pension scheme before 4 November 2021. Additionally, it’s understood that before this protection could be applied to EAPF members, it would need to be written into the LGPS regulations.

The Finance Bill is expected to receive Royal Assent early next year and will become law from 6 April 2023 (though, as noted above, the NMPA increase won’t take effect until 6 April 2028).

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