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Early Retirement
The minimum age that early retirement benefits can be paid for Members leaving active service with an immediate entitlement to pension is age 55 and is subject to consent from your Employer. If you retire from service between the ages of 55 and 64, your pension may be reduced for each year and month that you retire early. The following tables set out the reductions to apply for early payment.
EARLY RETIREMENT AT EMPLOYER’S REQUEST
| Service | Ages 55-59 | Ages 60-64 |
|---|---|---|
| Up to 1 April 2006 | No reduction | No reduction |
| Between 1 April 2006 and 5 April 2010 | No reduction | No reduction |
| From 6 April 2010 | Reduction of 5% p.a. back from age 60 | No reduction |
EARLY RETIREMENT WITH CONSENT1
If you joined before 1 December 2006:
An Early Payment Adjustment Factor (EPAF), is applied where employees are retiring with “Employer’s Consent”.
The EPAF is shown in the table below:
| Age |
60
|
61
|
62
|
63
|
64
|
65+
|
|---|---|---|---|---|---|---|
| Adjustment Factor |
25%
|
20%
|
15%
|
10%
|
5%
|
0%
|
The applicable EPAF is being phased in over a 5 year period from 1 October 2015 to 30 September 2020, at a yearly rate of 1/6th, until the full reduction applies. The remaining phases are as follows:
| Date Employee Retires |
1 Oct. 2016 to 30 Sept. 2017
|
1 Oct. 2017 to 30 Sept. 2018
|
1 Oct. 2018 to 30 Sept. 2019
|
1 Oct. 2019 to 30 Sept. 2020
|
1 Oct. 2020 Onwards
|
|---|---|---|---|---|---|
| Proportion of Full Adjustments Applying |
2/6th
|
3/6th
|
4/6th
|
5/6th
|
Full Adjustment Applies
|
Phasing – Examples
For an employee with an accrued Scheme pension of £20,000 per annum retiring with employer’s consent on their 60th birthday (i.e. five years before the Scheme’s Normal Pension Age of 65) an EPAF of 25%, before phasing, would apply (5 years x 5% per year).
Benefits with EPAF applied = £20,000 less 25% adjustment = £15,000.
With Phasing:
| Reaches age 60 before | Adjustment Factor | Annual Pension with EPAF applied |
|---|---|---|
| October 2017 | 25% x 2/6th = 8.34% |
£18,332
|
| October 2018 | 25% x 3/6th = 12.50% |
£17,500
|
| October 2019 | 25% x 4/6th = 16.67% |
£16,666
|
| October 2020 | 25% x 5/6th = 20.84% |
£15,832
|
| October 2021 | 25% |
£15,000
|
[1]The Company seldom grants requests for “with consent” retirement between the ages of 55 and 59. Any such requests require the personal approval of the Executive Director HR, Tata Steel Europe.
If you joined on or after 1 December 2006:
| Service | Ages 55-59 | Ages 60-64 |
|---|---|---|
| From 1 December 2006 | The Company seldom grants requests for "with consent" retirement between the ages of 55 and 59. Any such requests require the personal approval of the Executive Director HR, Tata Steel Europe. | Reduction of 5% p.a. back from age 65 |