If you need to retire due to Incapacity and ABF plc agrees after being supplied with acceptable medical evidence, then an immediate pension will be paid as long as your early retirement pension at least equals any guaranteed minimum pension that is due to be paid from your GMP payment date.
Your ill health early retirement pension is calculated using the same formula as for normal retirement benefits (please refer to Retirement) but using final pensionable earnings and pensionable service to the date of early retirement. Generally, the following reduction is applied to pensions when members retire on ill health direct from the company's employment (although no reduction is applied if the Trustee has evidence that the Incapacity renders it impossible for the member to ever to resume his or her job or any other trade, profession or occupation of whatever nature):
- Pension in respect of Pensionable Service before 6 April 2010 is reduced by not more than 1/6% for each month or part month that the pension starts before Normal Pension Age;
- Pension in respect of Pensionable Service from 6 April 2010 is reduced by not more than 1/6% for each month or part month that the pension starts before Normal Retirement Date.