Firefighters in the New Firefighters' Pension Scheme (2006 Scheme) who leave service without entitlement to immediate benefits, but with deferred benefits payable from age 65, may opt to take early payment of pension and additional pension benefits from age 55 with an actuarial reduction.

Factors are provided to reduce the benefits of members who wish to retire before their normal benefit age. The factors are provided in years and months, and the appropriate factor should be selected based on age in complete years and months at the date of early retirement.

This section refers only to benefits payable in accordance with the Regulations relating to early payment of main scheme benefits and additional pension.

The benefits payable on early retirement are determined by applying the appropriate reduction factor to the accrued benefit entitlement(s) at the date of retirement using the formula below and factors in Factor tables.

The early retirement pension should be calculated using the following formula:

Early retirement pension = Scheme pension x ERF

Where:

Scheme pension includes any transferred-in, additional pension benefit and added years. The pension should be increased from the date of leaving the scheme until the date of early retirement in line with the Pension Increase Act, before applying the factor.

ERF is the early retirement factor from Table A (Table 401 in the consolidated factor spreadsheet) in Factor tables. The early retirement factor is chosen by reference to the member's age in years and complete months at the point of retirement.

Pensions payable to a member's spouse, partner or dependant should not be reduced.

Reduced benefits to be calculated before any lump sum commutation option is exercised. The resultant lump sum after any commutation option is exercised is then not subject to further reduction.