The calculations below are appropriate for members subject to benefit reduction due to AA charges retiring after their normal pension age from either active or deferred status.

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 late 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 after their normal pension age are described below for both the 1995 and 2008 Sections.

The pension and lump sum debits should be applied to main scheme benefits which have been adjusted to allow for late retirement. Please refer to early and late retirement in normal health guidance. The debits should be applied to main scheme benefits before any member options are 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)