These pages are for employer use only. Member information can be found on the home page.
An employee can retire early from age 55. But, if they do, their benefits will be reduced for early payment.
The amount of the reduction will depend on how early before normal pension age the employee is having their benefits.
If a member chooses to retire from age 60, and they meet certain criteria for the 85 year rule protections, then the reduction applied may be tapered or not applied at all.
You can use your discretion to switch on the 85 year rule, if the employee is choosing to leave before age 60, but would have met the criteria at this age. If you do this, the employees benefits will not be reduced, but you will have a strain cost to pay, to make up for the missing contributions.
If an employee meets the criteria for the 85 year rule, but you do not switch it on, their benefits will be reduced.
Any policies you have about the 85 year rule, must be in your discretions policy.
What do we need to process an early retirement?
We will need a completed PEN007A leavers form and a P45 if one is available.
This should be sent so that income tax deductions can be assessed.