The circumstances in which early payment is possible are set out in Regulation 2 of the Pension Protection Fund (Compensation) Regulations 2005.
Pension compensation calculation
The amount of pension compensation payable early is calculated according to the table in the link below. This applies to all compensation determinations for early retirement with an effective date on or after 1 October 2019.
Early retirement factors from 1 October 2019 – periodic compensation
For retirements on or after 1 October 2020, the factors in the below table will apply.
Early retirement factors from 1 October 2020 - periodic compensation
Lump sum calculation
The amount of lump sum compensation that can be paid early – where the lump sum is a separate entitlement from pension, rather than derived by commuting pension – is calculated according to the table in the link below:
Early retirement factors from 1 April 2015 – lump sum
Previous periods
You can view early retirement factors valid for previous periods
Please note: The early retirement factor is applied to the compensation before the compensation cap is applied.
From time to time we review early retirement factors, which may be changed without notice.
