Actuarial Reductions - LGPS Advice
Myself and two colleagues are helicopter pilots with the police. We are all in the age bracket (54-58 years old) and have been members of the Local Government Pension Scheme (LGPS) for a number of years. Our employment as pilots is controlled by the Civil Aviation Authority (CAA) who state that we cannot fly single pilot aircraft (police helicopter) post our 60th birthday. We have been informed by our employer, XXXX Police that on reaching our respective 60th birthdays our employment will be terminated by means of "voluntary retirement" and should we wish to take our pensions early, i.e. at 60 years old as opposed to 65 years old then these will be subject to an actuarial reduction of 25% and any lump sum reduced by 14%. Is this correct? Surely, as we are being forced to retire purely due to reaching 60 years of age and not being able to continue employment because of a CAA Directive, this should not warrant the actuarial reduction of our pensions? In effect we are being made redundant. I would be most grateful if you would kindly offer any advice as how we should address the situation we find ourselves in.