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Redundancy/Business Efficiency

If your employer makes you redundant, or you are retired on the grounds of business efficiency, and you are aged 55 or over and meet the two year qualifying period, your benefits will be paid immediately without any early retirement reductions.

As these pension benefits are being paid early there is a cost to the Scheme. In the event of redundancy or efficiency this cost is met by your employer.

Any additional pension paid by additional pension contributions or shared cost additional pension contributions is paid at a reduced rate if the retirement occurs before your normal pension age. 

If you were a member of the Scheme before 1 April 2015 the pension you built up before then is based on your final pay when you leave the Scheme.  If you have bought additional pension by additional regular contributions, that additional pension would be paid at a reduced rate if you retire before age 65. 

Your employer may also enhance your benefits with up to £6,843 extra pension each year (2018/19 figures). Please note that this is a discretion that your employer can use if they wish. They must have a policy on when they will award additional pension and you should contact them directly if you wish to enquire about this. An employer award of additional pension is not reduced if paid early on redundancy/business efficiency grounds.