Early retirement and redundancy
Classic pension scheme
What happens if I am made redundant?
If you are under 50, your employer will pay you compensation for loss of
job. We will pay you your pension at your normal pension age.
If you are over 50, you will either
-
receive early payment of an enhanced pension and lump sum payable
immediately and compensation for loss of job, or
-
you can choose to take an enhanced Annual Compensation Payment (ACP),
payable from your last day of service to pension age, with compensation
for loss of job. Your enhanced pension and lump sum will be payable from
pension age and a small ACP based on the enhancement will be payable from
pension age or can be taken as a one off lump sum.
Both of these packages are designed to be worth the same.
Can I draw my pension early?
You can apply to take your pension at any time after age 50. However, we
will reduce your pension to take account of the fact that we will be paying
it for longer. This is called ‘actuarial reduction’.
We will usually reduce your pension by around 5.25% for each year you draw
it before pension age. This is a permanent reduction in pension, not just a
reduction up to pension age.
In certain circumstances, you may be offered ‘approved early retirement’.
In this case you will receive your pension early but without the reduction.
If you are aged at least 55, with a minimum of 25 years’ qualifying
service, you may be eligible to apply for approved early retirement.
