PART 6Retirement benefits

CHAPTER 5Payment options

Option to buy out early payment reduction74

1

This regulation applies if—

a

a member of this scheme becomes entitled under Chapter 2 or 3 to the immediate payment of a full retirement pension or a partial retirement pension; and

b

the member has not reached—

i

normal pension age under this scheme; or

ii

if applicable, the member's effective 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 retirement pension.

3

The cost must be met by way of a special payment to this scheme made by—

a

the member;

b

the member's employer; or

c

both the member and the employer.

4

Any special payment by the employer must be made with the consent of the scheme manager.

5

The cost of buying out the early payment reduction is an amount determined by the scheme manager after consulting the scheme actuary.