If members are currently in pensionable service (actively contributing to your pension) they can pay additional contributions that will allow them to retire before their Normal Pension Age (NPA) without their benefits being reduced by the standard rate of Actuarial Reduction that applies between age 65 to age 68. They can Buy Out 1, 2 or 3 years of this standard rate dependent on their NPA. Contributions are paid throughout their career. If the member leaves pensionable service and then returns after a break of not more than five years, the Buy Out can resume. But members will need to inform you to start deducting contributions in this new employment.

You’ll need to make members aware that if they wish to elect for Buy Out, they must make an election within six months of first entering the Scheme. You must inform us of starters and leavers when they occur as otherwise members may be incorrectly allowed to continue with a purchase or have one stopped in error. Contributions are on a percentage basis.

(Any retrospective Buy Out elections can only be made if the member is in service).