PART 5Pension accounts
CHAPTER 2Calculation of adjustments
Actuarial reduction on early payment of pension (early payment reduction)47
1
An actuarial reduction (early payment reduction) is applied when calculating the annual rate of pension payable to—
a
an active member who becomes a pensioner member of this scheme before reaching normal pension age under this scheme;
b
a deferred member who becomes a pensioner member of this scheme before reaching the member’s state pension age; or
c
a person who becomes a pension credit member of this scheme before reaching the member’s state pension age.
2
An early payment reduction is not applied when calculating—
a
the annual rate of ill-health pension under this scheme; or
b
the annual rate of full retirement pension which came into payment early on grounds of permanent medical unfitness58.
3
An early payment reduction is calculated by reference to the following—
a
for an active member who claims payment of a full retirement pension before reaching normal pension age, normal pension age under this scheme;
b
for a deferred member of this scheme who claims payment of a full retirement pension before reaching the member’s state pension age, the member’s state pension age.
4
In these Regulations—
“actuarial reduction” means a reduction determined by the scheme manager, in accordance with actuarial guidance or actuarial tables; and
“early payment reduction” means an actuarial reduction that is applied under paragraph (1).