How does the phase down work? Are the reductions incremental or fixed?
The reductions for those of you with between 15 and 20 years’ relevant pensionable service at 1 December 2006 are fixed. For example, if you have 17.5 years’ pensionable service, the reduction is 1.5% a year – the same as it would be if you had 17 years and one day’s pensionable service, or 17 years and 364 days’ pensionable service. If you then retired early at, say, age 56 and 6 months, the reduction on your pension for service before 1 December 2006 would be pro rated for each year (and part year) your retirement is before age 60. That is 5.25% (3.5 years at 1.5% a year).
