Non-pensionable excess service

If your excess service wasn’t pensionable (because your employer wasn’t an accepted Local Government Pension Scheme employer), you’ll be asked to make the choice of either immediately taking or deferring your contributions as compensation.

Immediately taking your contributions as compensation with interest

You can choose to take a compensation payment now. If you take a compensation payment now, your excess service will not count towards your pension benefits for the remedy period.

The compensation payment will have the relevant interest applied.

Electing to defer your contributions as a compensation payment until you make your choice at retirement (Deferred Choice Underpin)*

You can choose to defer the compensation payment until retirement. If you defer, your career average option will be presented to you with this service included. Should you choose to have your remedy period service calculated under the career average scheme at retirement, then the compensation payment will be included when calculating your career average benefits. If you choose to have your remedy period service calculated under the final salary scheme at retirement, you’ll automatically be paid a compensation payment (with applicable interest).

Last Updated: 31/01/2024 15:51


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