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Document How is abatement calculated if I retire from the 1995 section of the scheme?

In the 1995 section of the scheme, abatement applies where your earnings from re-employment plus the unearned element of your pension in payment exceed your actual earnings before retirement. The unearned element is the difference between your annual pension payable and the amount that would have been paid as a reduced pension due to voluntary early retirement. The reduction can be up to the total value of the unearned element and will continue until you reach age 60 or the earnings from your re-employment reduce sufficiently.

In all cases, the gross pension amount used in the calculation is the amount of pension before reduction to pay for any optional bigger lump sum on retirement.

If your last day of pensionable employment was on or before 31 March 2008, previous abatement provisions apply up to age 60 and require that your pension is reduced where your earning from re-employment plus your gross annual pension exceed your earnings before retirement. The reduction can be up to the total of the annual pension and continue until you reach age 60 or the earnings from your re-employment reduce sufficiently.

The above does not apply if you are a Special Class or Mental Health Officer (MHO) member. Please see the relevant related article for details of how abatement is calculated for Special Class or Mental Health Officer (MHO) members.
For further information, please see the factsheets available in the 'Working After Retirement' section of our website.
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