If you are an active member with the agreement of the Company, you can retire early as long as your early retirement pension at least equals the Guaranteed Minimum Pension (GMP) that is due to be paid from your GMP payment date. The minimum retirement age is currently 55, increasing to 57 from 6 April 2023. In certain circumstances members who joined before 1 January 1993 can retire early from age 50. Early retirement is only granted with the agreement of the Company and Trustee.
Your early retirement pension is calculated using the same formula as for normal retirement benefits (please refer to Normal Retirement) but using Pensionable Salary and Pensionable Service to the date of early retirement. The pension is also subject to a reduction to take into account that it will be in payment for a longer period.
The current early retirement reduction that will be applied for members who retire from active service is:
- For service to 6 April 2010: 4% per annum simple between your retirement date and your 60th birthday
- For service from 6 April 2010: 4% per annum simple between your retirement date and your 65th birthday
Deferred members
If you leave the company or opt out of the Scheme and apply to take your benefits at a later date, then different early retirement reduction factors will apply.
The reduction applied for early retirement from deferred is currently 4% per annum simple between your retirement date and your 65th birthday.