PART 6Retirement benefits
CHAPTER 5Payment options
F1Option to partially buy out early payment reduction82A
1
This regulation applies if—
a
a member of this scheme becomes entitled under Chapter 2 to the immediate payment of a full 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, with the consent of the Department, opt under this regulation to buy out a proportion of 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 (“the employer”); or
c
both the member and the employer.
4
The employer may make a special payment using a lump sum payable to the member under a compensation scheme.
5
Any special payment by the employer must be made—
a
in accordance with the compensation scheme; or
b
with the consent of the Department.
6
If the employer makes a special payment under paragraph (5)(a), the lump sum payable to the member under the compensation scheme is reduced by the amount of the special payment.
7
The scheme manager, after consulting the scheme actuary, must determine the actuarial reduction that would apply if a member exercises the option under this regulation.
8
Where a member exercises the option under this regulation, references in these Regulations to the early payment reduction apply as if the reference were to the actuarial reduction determined under this regulation.