PART 4 N.I.Pension accounts

CHAPTER 7N.I.Pensioner members' accounts

SECTION 1N.I.Interpretation

Meaning of “standard reduction”N.I.

73.—(1) The standard reduction is 3% and applies in relation to a maximum of 3 years between age 65 and a member's normal pension age.

(2) The standard reduction is applied when calculating the annual rate of pension payable to a member (P) who—

(a)was an active member immediately before the entitlement day for a phased retirement pension, premature retirement pension or early retirement pension; and

(b)on the entitlement day for that pension—

(i)has reached normal minimum pension age; but

(ii)has not reached normal pension age.

(3) If a retirement pension becomes payable to P on or after the date on which P reaches 65, the standard reduction applies in relation to a proportion, determined by the Department, of the time left until P reaches normal pension age.