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RETIREMENT ON AGE GROUNDSWHAT DO I DO?No later than four months before you intend to retire, you should notify your employers ofyour intention in order that they may initiate the process of claiming retirement benefitsfrom the Scottish Public Pensions Agency (SPPA). You will be sent form STSS (RET) Part 1which should be completed and returned to your employer as soon as possible. Youremployer should complete form STSS (RET) Part 2 and both completed forms should bereturned to the SPPA. Only when both forms are processed by the Agency will yourretirement benefits be put into payment. Your lump sum will normally be paid shortly afteryour date of retirement. The pension is payable monthly in arrears and you should receivethe first payment at the end of the month in which you retire or at the end of the followingmonth if you retire at or near the end of the month.WHEN SHOULD I RETIRE?If you are age 60 or over you may retire at any time provided that you give the requirednotice to your employers. (Generally this is 4 weeks excluding holiday periods but 8 weeksfor those in promoted posts.) If you are considering retirement at the end of the schoolsession you should retire from the last day of the summer holidays. This means you will bepaid for the holiday period and it will be recorded as pensionable service for pensionpurposes.If you are not yet aged 65, you should also consider applying to your employing authorityfor release under the Teachers' (Compensation for Premature Retirement) (Scotland)Regulations 1996. Release under these regulations could result in some compensationfrom your employer for retiring before age 65. Release under this scheme and the amountof compensation, if any, would be entirely at the discretion of your employer. The prospectof some additional payment from your employer nevertheless would indicate that it couldbe worthwhile raising the matter with them before deciding to retire.WHAT BENEFITS CAN I EXPECT?If you are age 60 or over, you will be entitled to personal pension benefits consisting of apension and tax-free lump sum providing that you:(i)(ii)(iii)have been employed in pensionable employment on 6 April 1988 and havebeen employed in such service, whether before or after that date, for at least 2years; orhave been employed in pensionable employment after 5 April 1988 for at least2 years; orserved in pensionable employment before 6 April 1988 and have beenemployed for at least 5 years in pensionable employment.HOW ARE THESE PERSONAL BENEFITS CALCULATED?The pension and tax-free lump sum are calculated as follows:PENSIONThis will be calculated at the rate of 1/80th of your pensionable salary for each year ofpensionable employment (and proportionately (expressed in days) for each part-year ofservice). The maximum service which can count for pension purposes is 45 years at age75.For example, if you have 35 years of pensionable employment and your pensionable salaryis £32,500 your pension will be:91September 2012