These pages are for employer use only. Member information can be found on the home page.
This is a retirement on or after age 55 and before Normal Pension Age (NPA) where a member retires and elects to receive the retirement benefits immediately, subject to an early retirement reduction.
The amount of the reduction applicable to the members’ benefits depends on how many years the retirement begins before the members NPA. If a member chooses to retire from the age of 60 and they meet certain criteria for the “85 year rule” protections, then the reduction applied may be tapered or not applied at all.
Employers have the choice, where the 85 year rule does not automatically fully apply to members who would otherwise be subject to it and who choose to voluntarily draw their benefits on or after age 55 and before age 60, to ‘switch’ the 85 year rule back on in full for such members; but this would come with a ‘fund strain’. It is important that the individual employers’ policy on this discretion is outlined in their policy document as a written statement is required. Where the employer does not ‘switch’ the 85 year rule back on, then if the member has already met the 85 year rule, the member’s benefits are to be reduced. However, it is important to remind any members who are considering this option that they must contact the Pensions Team for further advice and a quotation before making any decision.
What do the Pensions Team need to process an Early Retirement
- Completed leavers form PEN007
- P45 (if available) – this should be sent in order for income tax deductions from the pension to be assessed.