BGCM EC May 2017

Another example:

If:

- you joined on or after 1 July 2011,

- you want to retire at the age of 57 years and 6 months, and

- the pension you have built up is worth £5,000 p.a.

you will be entitled to draw your pension straightaway, provided that you obtain the consent of the trustees.

 All of your pension was earned on and after 1 July. It will be reduced by reference to your 65th birthday: that is, it will be treated as if it is being paid 7 1/2 years early. The reduction to this part of your pension is

7.5 x

4%

=

30%

Your pension is therefore reduced by 30% and is now

£3,500 p.a.

Important Notes

The outline set out above, and the examples, apply only to members who are contributing members. If you are a deferred member and you want to draw your pension before your 65th birthday you should read Section 10 of this booklet. The reduction factor of 4% used in these examples is purely for the sake of illustration . The actual factors that the Trustees use vary from time to time. If you intend to retire early, you should obtain confirmation from the Scheme Administrator as to the factor that will actually be applied in your case At GMP Retirement Age, the part of your pension which has accrued in respect of your contracted-out service before 6 April 1997 must not be less than your GMP. This means it may be necessary to further reduce the amount of your early retirement pension before GMP Retirement Age so that your GMP can be paid in full. In some instances, payment of pension before your Normal Retirement Age may not be allowable.

What if I retire early because I am suffering from ill-health?

If the reason for your retirement is your health, you may be permitted to retire with an immediate pension if:



you are aged 45 or more and

18