Your deferred pension is payable at age 60. It will be calculated using the pension formula, but based on your final pensionable salary, pensionable service and credits at the date you opted out or left service.
Deferred pensions are reviewed annually and any increases are awarded on 1 April. The scheme guarantees to increase deferred pensions by the lesser of the rise in the Retail Prices Index (RPI) for the previous calendar year (January to December) and 5%.
In the first year you will receive a proportion of any increase awarded, reflecting the number of complete months from the date you left service to 1 April.
You should contact us two months before you want your pension to begin to obtain details of your pension options. You can request early payment of your pension any time after age 50 (up to 2010). The government has announced that from 6 April 2010 the earliest age at which benefits can be taken will be 55, except in the case of ill health.
Early payment of your pension requires the trustees' approval. It will be reduced for early payment to allow for it being paid for longer.
The amount of reduction will depend on your age at the time your pension comes into payment. The BBC may vary the percentage reductions from time to time. The following percentages are currently in use:
| Retirement age | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| % reduction | 40 | 36 | 32 | 28 | 24 | 20 | 16 | 12 | 8 | 4 | 0 |
Between birthdays the reduction is proportionate.
The reduction factors are reviewed annually and are subject to change
Change to the early payment reduction factors
From 6 April 2010, the rates of reduction for deferred members (past service) and active members (future service) for Old and New Benefits members who request early payment of their pension will be:
| Retirement age | 55 | 56 | 57 | 58 | 59 | 60 |
|---|---|---|---|---|---|---|
| % reduction | 24 | 20 | 16 | 11 | 6 | 0 |
Increasing life expectancy and lower than expected investment returns have, amongst other things, added to the costs and risks of running the Scheme. The revised scale of reduction is higher than the current scale and more accurately reflects the cost to the Scheme of paying your pension early.
Change is necessary to provide security for all members.
Incapacity
If you become permanently ill or disabled, and your earning capacity is significantly reduced, you can apply in writing for immediate payment of your deferred pension, regardless of your age.
Payment is at the trustees' discretion and a reduction for early payment may be applied.
The above information refers to the New Benefits section.
Last updated: 22 March 2010
