Redundancy

If you are retired by your employer (other than on grounds of ill-health) before Normal Retirement Age with at least with at least 5 years' service (including 2 years' Qualifying Service), you may, after age 55, take your pension immediately.

Your pension will be calculated in the same way as at Normal Retirement Age (see the 'your benefits at retirement' page) but based on your Final Pensionable Pay and the Pension Blocks that you have built up when you actually retire. Your employer will decide if your pension should be reduced for early payment (see below).

Reduction for early payment
Your employer may decide that your pension should be reduced because it is being paid early. They will do this only on a basis certified as reasonable by the Actuary.

If your pension is reduced for early payment, the actual pension you receive will depend on how old you are when you retire and how much of your pension (before reduction) relates to Pensionable Service before 1 April 2010, as follows:

  • pension for Pensionable Service up to and including 31 March 2010 will be paid without reduction if you retire on or after your 60th birthday.
  • if you retire before age 60, the part of your pension that relates to your Pensionable Service up to and including 31 March 2010 will be reduced by a factor (calculated by the Actuary) related to the number of years (and part years) between your actual retirement date and your 60th birthday.
  • all of your pension relating to Pensionable Service after 31 March 2010 will be reduced if you retire before age 65 by a factor (calculated by the Actuary) related to the number of years (and part years) between your actual retirement date and your 65th birthday.
  • pension for Pensionable Service after 31 March 2010 will be paid without reduction if you retire on or after your 65th birthday.

If your reduced pension does not cover the Guaranteed Minimum Pension(GMP), your benefits will not be paid until they are at least equivalent to the GMP at your State Pension Age. If you are retired by your employer (other than on grounds of ill-health) before Normal Retirement Age with less than 5 years’ Qualifying Service, then you will be entitled to a preserved pension.