If you are under 55 and have retired from one post on redundancy grounds and remain in another post, you will become subject to "unauthorised payment" tax charges.
Returning to work within local government, or with another organisation that participates in the LGPS, after retiring on redundancy grounds may also have significant implications for you.
If you retired through redundancy or efficiency service and return to work for an LGPS employer:
- Your benefits could be subject to tax charges if you are under 55
- You could have to repay any compensatory added years payments you have received
- Any extra years' service added to your pension may be reduced
If your new employer is not an LGPS employer, your pension will not be affected.
Our Notes of guidance for pensioners (PDF, 82 KB)(opens new window) has more information about the consequences of continuing to work after a redundancy retirement.
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