Option to buy out early payment reduction
120.—(1) This regulation applies if a member of this scheme claims payment of a full retirement pension under Chapter 2 (full retirement benefits) and—
(a)if the member is an active member, the member has not reached normal pension age under this scheme; or
(b)if the member is a deferred member, the member has not reached the member’s state pension age.
(2) The member may opt under this regulation to buy out the early payment reduction that would otherwise apply to the calculation of the annual rate of full retirement pension.
(3) The cost must be met by way of a special payment to this scheme made by the member.
(4) The cost of buying out the early payment reduction is an amount determined by the scheme manager in accordance with actuarial guidance.
(5) Any special payment made by a member must be made in accordance with the requirements of the scheme manager.