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 603 in the consolidated factors workbook.

The appropriate factor will depend on the member's age (last birthday) at their date of early retirement.

The steps necessary to calculate a benefit reduction for members retiring in normal health before their normal pension age are described below.

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 current early and late retirements guidance for the calculations to apply. However, the debits should be applied to the main scheme benefits before any member options have been exercised, e.g. commutation.