Member Initiated Early Retirement

Member Initiated Early Retirement may be payable to a firefighter who has left service with entitlement to a deferred pension and asks for it to be paid early straight away. An application can be made between age 55 and normal benefit age for a deferred pension, which is 65.

The first part of the calculation uses the basic formula, i.e.

annual pension = 1/60 x pensionable service x final pensionable pay

but then a reduction based on the Scheme Actuary’s guidance is applied. This reflects the fact that the pension will be paid for longer.

For example, a former firefighter asks for early payment at age 58, having completed 10 years’ pensionable service with final pensionable pay of £27,000. An actuarial factor of 0.690 would apply and the pension would be worked out as –

(1/60 x 10 x £27,000) x 0.690 = £3,105.00 a year

The table below sets out the percent reductions.

FPS 2006 early retirement factors
Age 55 56 57 58 59 60 61 62 63 64
Percentage reduction 39.9% 37.1% 34.2% 31% 27.6% 23.9% 19.9% 15.5% 10.8% 5.7%

Part of the annual pension after reduction can be converted to provide a lump sum – see how much lump sum can I take?


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