If you are retired on the grounds of redundancy or business efficiency, your pension benefits are payable immediately without any early retirement reductions provided you are over age 55 and you have been a member for two years or more.
You are aged at least 55 at the date of leaving
If you are aged 55 or over and have more than two years membership, ‘unreduced’ pension benefits will be paid straight away. These benefits must be paid straight away, you cannot ‘defer’ payment to a later date. The benefits payable to you are based on your membership up to the date you leave employment.
Unreduced does not mean the benefits you would have received at your Normal Pension Age (NPA), it just means there is no reduction applied for early payment.
If you have paid additional contributions
Any additional pension paid for by Additional Pension Contributions (APCs), Additional Regular Contributions (ARCs) or Shared Cost Additional Pension Contributions will be paid at a reduced rate, to take account of the additional pension being paid for longer.
If you are paying for extra years in the scheme, you will have the opportunity to pay any remaining contributions that are due in a lump sum in order to complete your contract.