Regulation 73 Meaning of “standard reduction”
(1)
The standard reduction is 3% and applies in relation to a maximum of 3 years between age 65 and a member's normal pension age.
(2)
The standard reduction is applied when calculating the annual rate of pension payable to a member (P) who—
(a)
was an active member immediately before the entitlement day for a phased retirement pension, premature retirement pension or early retirement pension; and
(b)
on the entitlement day for that pension—
(i)
has reached normal minimum pension age; but
(ii)
has not reached normal pension age.
(3)
If a retirement pension becomes payable to P on or after the date on which P reaches 65, the standard reduction applies in relation to a proportion, determined by the scheme manager, of the time left until P reaches normal pension age.