Deferred pension

You will be awarded a deferred pension if you leave the scheme before you are able to draw your benefits.

The amount of your deferred pension will be the value of your accrued pension at the date of leaving.

If your benefits become a deferred pension, then your new pension age becomes age 65 and this means that you can no longer draw your benefits in full at age 60. You can choose to have them paid from age 55, but as this is before age 65, then your Fire 2006 benefits will be subject to early payment reductions.

The early retirement reduction factors for a retirement from deferred status can be found in the GAD guidance - Early payment reductions.

Example – How an early reduction percentage is worked out for 2006 scheme

A: Age at date when benefits are paid = 55 years 0 months
Early reduction factor = 0.597
Percentage reduction = 1 – 0.597 = 0.403 x 100 = 40.3%

A deferred pension will increase each year in line with the Consumer Price Index (CPI). An Annual Benefit Statement will be produced each year which will show you the current value of your deferred pension.