Members and employers have the option to buy out the early payment reduction, as calculated in Members retiring from active service and Members retiring from deferred status for active members and deferred members respectively, by making a special payment at the point of retirement.

The cost of buying out the early payment reduction applying to each amount of retirement or deferred pension (i.e. earned, added (self only) and added (all beneficiaries)) should be calculated using the formula below:

Buy-out cost = F_C x EPR

where:

F_C is the buy-out factor from Table C chosen by reference to the member's age at retirement in years and complete months

EPR is the early payment reduction for each account to be bought out.