 |
|
Reduction in Earnings: Preservation of Benefits
What if I suffer a reduction in earnings?
You may opt to take a preserved pension in respect of your pensionable service before the reduction took place if:
- you have at least 2 years’ qualifying service and are transferred to other employment with an employing authority;
- you choose to transfer to other employment with an employing authority in circumstances that the Secretary of State has approved; or
- there is a change in the nature of the duties of your employment and the change is not at your request.
To take up this option you must give notice in writing to SPPA within 3 months of the reduction taking place.
Your benefits for your service up to the date of the reduction will be preserved for payment at age 60 or at retirement, whichever is later. Your benefits may be paid before age 60 if you retire on grounds of ill-health.
Benefits for your service after the reduction will continue to accrue, and will be calculated separately. Preserved benefits will be index-linked and brought into payment when you retire.
If, however, it would be more favourable to you to treat your service before and after the reduction as continuous then this will be how your benefits are calculated.