The factors in the table below should be used for determining the lifetime equivalent value of a step-down pension for calculations with effective dates from 1 October 2023.
In all determinations, the compensation cap must be compared with an annual value of benefits.
And in calculating the maximum amount of cash that can be taken through commutation, these factors should be used alongside the commutation factors.
Early retirement factors for a step-down pension
For an early retirement, with an effective date on or after 1 October 2023, the amount of early step-down pension compensation is calculated according to the factors in this table:
View step down factors from previous periods
The early retirement factor is applied to the compensation before the compensation cap is applied.
From time to time we review all factors, which may be changed without notice.