Redundancy
classic plus
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, your employer will pay you compensation when you leave. They will then pay you an Annual Compensation Payment (ACP) until we pay your pension at pension age. Your employer will give you the choice of:
- another lump-sum compensation when you reach pension age; or
- another ACP for life based on the enhancement only.
This package is designed to be worth the same as in classic.
Can I draw my pension early?
You can apply to take your pension at any time after age 50 (age 55 if you are a new joiner on or after 6 April 2006). However, we will reduce your pension to take account of the fact that it will be paid 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.
