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Document *What is Early Retirement Reduction Buy Out (ERRBO) and how do I apply?

If you take your 2015 Scheme benefits before your Normal Pension Age (NPA) they are reduced to take into account their early payment. A new provision exists for you or your employer to pay extra contributions so you can take your 2015 Scheme benefits at an unreduced level before you reach your NPA.

You cannot buy an early retirement reduction buy out that would reduce your NPA by more than three years or would result in a retirement age of less than age 65.

An application for an ERRBO agreement must be made within three months of joining the 2015 Scheme for it to be effective from your first Scheme year.

Similarly, an application must be made within three months of the beginning of any subsequent Scheme year for it to be effective from that Scheme year.

Any application made later will only be effective from the beginning of the following Scheme year moving forward. Previous scheme years are not protected by ERRBO and will be subject to an actuarial reduction.

Once an agreement is in place it will automatically roll forward to subsequent Scheme years until ended. It is not permissible to make retrospective applications for earlier Scheme years.

Should you wish to apply for an ERRBO agreement, please complete an expression of interest form (ERRBO1) and send this to NHS Pensions. We will issue you with a quotation (ERRBO2). We aim to respond within 20 working days.  Should you wish to go ahead with the agreement you would then need to complete the Application for agreement form (ERRBO3) and forward this along with a copy of the quotation to your NHS employer.  If you have more than NHS employer, please send these to all employers who you are currently paying pension contributions with.

To view the ERRBO factsheet, expression of interest and application for agreement forms, please see our website.
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buy out, actuarial, buy back, 2015

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