RHM Pension Plan 35 and Plan 45 - RHM Pension Scheme - UK.com

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20
Early and late retirement
Early retirement
With your employing company’s
agreement, you may retire from
service at any time from age 50 and
start to receive an immediate
pension. The way in which your
pension is calculated will depend on
your age at retirement.
Retirement between the ages of
60 and 65
If you retire between the ages of 60
and 65, your pension will be based
on your Final Pensionable Earnings
and your completed Pensionable
Service (see page 16) at the time you
retire. You will receive this pension
immediately with no reduction for
early payment.
Retirement between the ages of
50 and 60
If you retire between the ages of 50
and 60, your pension will be
calculated in the way described
above except that it will be reduced
by 4% a year for each year before
age 60. For example, if you retire at
age 58, your pension will be
reduced by 8% to take account of
early payment.
◆ Example
Let us assume that your Final Pensionable Earnings are £20,800 and that you retire at
age 60, having completed 25 years’ Pensionable Service in the same Pension Plan. Your
early retirement pension would be:
PLAN 35 PENSION
1/80 x £20,800 x 25 years = £6,500 a year (£125 a week)
PLAN 45 PENSION
1/60 x £20,800 x 25 years = £8,666.67 a year (£166.67 a week)
If instead you retire at age 58, having completed 23 years’ Pensionable Service, then your
pension would be:
PLAN 35 PENSION
1/80 x £20,800 x 23 years £ 5,980.00
Less Reduction of 8% £ 478.40
(2 years at 4% a year)
Equals Pension £5,501.60 a year (£105.80 a week)
PLAN 45 PENSION
1/60 x £20,800 x 23 years £ 7,973.33
Less Reduction of 8% £ 637.87
(2 years at 4% a year)
Equals Pension £7,335.46 a year (£141.07 a week)