For each period in which ERRBO contributions are paid a member is treated as having a reduced NPA for the purposes of determining benefits payable. At the point of a member's retirement the reduced NPA (RRA) is determined by reference to the member's SPA (State Pension Age as specified in legislation at that date) less the period of early retirement reduction buy-out secured by their ERRBO agreement. This is different to when determining contributions payable under ERRBO contracts where the cost is linked to SPA as set out in stated Government policy. Similarly at other non-retirement events RRA is defined by reference to stated Government policy at the time.

This section briefly outlines the calculation of such benefit entitlement in circumstances where no actuarial factors are required to determine those benefits. Where actuarial factors are required for determining benefits payable to members who have an ERRBO agreement, factors and instructions on their application in the calculation of benefits is dealt with within the latest relevant GAD guidance as below

On retirement at RRA the accrued benefit entitlement is payable without adjustment. Where benefits accrued over different periods are subject to different RRAs, or where ERRBO agreements are not in place for all pensionable service it will be necessary to calculate benefits for each period with differing NPA or RRA separately. Early or late retirement adjustments should be applied to benefits with differing NPA/RRA in accordance with other GAD guidance.

Each member may potentially have accrued pension with any or each of the following effective retirement ages: NPA, NPA - 1, NPA - 2 and NPA - 3 where the member has an integral SPA, or NPA, 67, 66 and 65 where member has a non-integral SPA. Depending on age at retirement date each 'slice' of benefit will be determined separately.

The process outlined above applies equally for voluntary withdrawals, with appropriate increases to deferred entitlements being awarded during the period prior to retirement and adjustments applied to relevant 'slices' of benefit depending on actual date of retirement. In these cases, the RRA will be determined at the point of retirement and linked to SPA specified in legislation at that time. Prior to then any required calculations (e.g. CETVs) will be based on RRA linked to SPA in accordance with stated Government policy at the date of calculation.

An ERRBO agreement has no 'value' if a member retires on ill health grounds or dies before retirement. Benefits should be determined ignoring any ERRBO agreement. Any benefits based on prospective service should take account of service to NPA (as RRA is irrelevant to these calculations). NPA is that based on stated Government policy for the purposes of ill-health retirement and death before retirement.