The calculations below are appropriate for members subject to benefit reduction due to AA charges retiring before their normal pension age from either active or deferred status, other than those retiring on grounds of ill-health.

The factors used for the calculations are in Table 601 in the consolidated factors workbook.

The appropriate factor will depend on the member's age (last birthday) at their date of (early) retirement. Factors are selected according to whether members are in the 1995 or 2008 Section.

The steps necessary to calculate a benefit reduction for members retiring in normal health before their normal pension age are described below for both the 1995 and 2008 Sections.

The pension and lump sum debits should be applied to the main scheme benefits after they have been reduced to allow for early retirement. Please refer to the early and late retirement in normal health guidance in force. However, the debits should be applied to the main scheme benefits before any member options have been exercised, e.g. commutation.

For Choice members, taking the Mandatory Lump Sum is deemed to be a commutation event and therefore the benefit reduction due to Scheme Pays applies to the pension benefit only.

1995 Section

2008 Section (including Choice members)