After hearing again, for the umpteenth time, that you MUST have a break in employment to take the final salary pension I decided to put the answer here.
UNDER 60 (Final Salary scheme started before 2007)
Yes, to take this pension “early” you MUST have a break in employment.
60 or OVER
For the NPA60 scheme you do NOT need a break in employment, what you need is a break in “pensionable employment” and these are not the same thing. You can create such a break without leaving employment simply by opting out of the pension. You can, of course, create a break by leaving employment but you don’t have to.
THE REGULATIONS
https://www.legislation.gov.uk/uksi/2010/990/made/data.pdf
Schedule 7 – Retirement Benefits
Regulation 2:
2.—(1) Where a person (P) satisfies the condition for retirement, the entitlement day for Case A is—
(a) if P is not in pensionable employment on the day on which P reaches the normal pension age in relation to the reckonable service, the day on which P reaches that age, and
(b) if P is in pensionable employment on the day on which P reaches the normal pension age in relation to the reckonable service, the day after P ceases to be in pensionable employment.
Part 2 – Pensionable employment
Regulation 7 paragraph 3
(3) A person who makes an election under regulation 9 (election for employment not to be pensionable) is not in pensionable employment while the election has effect.
Images of the Application Form
These images taken from the application form, for “normal age” retirement also make it clear that it is sufficient to opt out, without leaving your employment, if you will reach the normal pension age and wish to take the pension.
So anyone who joined TPS after 1st January 2007 (NPA65) only needs a break of one month in the TPS scheme, whilst remaining in employment, to take the final salary pension early? I am considering taking my pension between 58 and 60, as I am FS NPA65 and CA NPA67, I can have a leave TPS for one month only. When do I opt out for this one month, before I reach 58 or 60? Thanks for the advice. Sofia
No, to trigger your entitlement day you have to be both at, or over, the normal pension age for your final salary scheme. So those who started in 2007 or later than means you have to be 65, not 60.
Hello David. Many thanks for your videos, and information.
I will be (NPA) 60 on 31 May 2025. I plan to continue working with my current contract, and with no break (I am aware of abatement). I would like to take all my FS (including the remedy period as FS). The website advises to apply four months in advance now. I have four questions, please:
1. Do I need to have left TPS (Opt Out) when I submit the application (e.g., January 2025)?
2. Can I submit the application in January 2025 and ‘Opt Out’ on 1 May 2025 (while it is still be processed)?
3. Would it be easier (and faster) to ‘Opt Out’ on 1 May 2025 and submit the application on 1 June 2025, the day after I become 60? – and wait to get the pension?
4. Will I have to take my CA Pension as well? I would like to leave it in the Scheme until I am 67.
I contacted the TPS and I got several answers…
Many thanks!
You can apply without having left, so long as you expect to be “out” on your birthday.
You will need to opt out during April in order to be “out” for May.