Did you move into the career average arrangement on 1 April 2015? If so, the deadline is fast approaching if you’d like to take up the Buy Out flexibility.

In the career average arrangement, your Normal Pension Age (NPA) is either your State Pension age or 65, whichever is the later date. If you plan to retire before your NPA, this is known as taking actuarially adjusted benefits (AAB) and your benefits will be reduced for each year that they’re taken early.

In career average, you can buy out that actuarial adjustment for up to three years, depending on the number of years between 65 and your career average NPA.

If your new NPA is 66 you’ll be able to Buy Out up to one year’s actuarial adjustment, if your new NPA is 67 you’ll be able to Buy Out up to two years and if your NPA is 68 you’ll be able to Buy Out up to three years actuarial adjustment.

This is a long term commitment and you’ll pay higher contributions throughout your career. You also need to be aware that the rates could change following the next Scheme valuation.

Contributions towards the Buy Out option last throughout your career, unless you decide to revoke your election.

Further information on ‘Buy Out’ can be found on our factsheet (PDF, 67 KB) (This link opens in a new window).

For any members who have joined the career average arrangement after 1 April 2015, your deadline to take up the option is 6 months after you joined the career average arrangement.