An actuarial reduction applies to the pension of deferred 2006 scheme members who retire in normal health after reaching age 55, but before age 65.
The surviving adult's pension and eligible child's pension is calculated using the member's pension before actuarial reduction.
The early retirement pension should be calculated using the following formula:
Early Retirement Pension = Deferred pension x FA
where:
Deferred pension is the member's deferred pension entitlement at the date of retirement before any actuarial reduction and should include transferred-in pension and added years.
FA is the early retirement factor from Table A (Table 407 in the Consolidated Factors Workbook), chosen by reference to the age of the member in years and complete months at the point of retirement.
The early retirement lump sum can be calculated using the following formula:
Early Retirement Lump Sum = Lump Sum x FB
where:
Lump Sum is the member's lump sum entitlement at the date of retirement before any actuarial reduction.
FB is the early retirement factor from Table B (Table 408 in the Consolidated Factors Workbook), chosen by reference to the age of the member in years and complete months at the point of retirement.
