Retiring early

VOLUNTARILY ON A REDUCED PENSION (ACTUARIALLY REDUCED PENSION)

If you are over 55, you can now choose to retire with an actuarially reduced pension and lump sum (you can find information on this on the Teachers' Pensions website). If you are no longer teaching, you can also claim a reduced pension after 55, provided that you have taught in the sector covered by the scheme after 29 March 2000. This early retirement option is entirely at the discretion of the lecturer. Employers may delay retirement for up to six months, but they cannot prevent or impose it.

Premature retirement on a full pension is still possible from the age of 50 - where the employer is prepared to pay part of the cost and the termination is on the grounds of redundancy or efficiency.

But, if you are thinking about retiring early on actuarially reduced benefits, there are a number of warnings.

• The reduction in pension is large and permanent - Teachers' Pensions suggests that you first consider independent financial advice.

• Don't apply for it if you are likely to qualify for ill-health retirement - once you are granted a premature or actuarially reduced pension, you will not be able to give it up in favour of the ill-health pension.

• It is not a substitute for a redundancy deal from an employer. If you are under any pressure to retire with an actuarially reduced pension you should contact your branch for support.

There are alternatives to taking early retirement:

• you could go down from full-time to part-time working - but if you take a cut in salary make sure that you protect your pension, and negotiate your terms and conditions with the help of your branch;

• you could leave to get another job - leaving your pension as a preserved benefit which you claim at 60 (it will be increased in line with inflation). Provided you meet all the criteria, you can continue to contribute to the pension scheme for up to three years after leaving (or up to six years if you teach overseas).

For figures on actuarially reduced pensions and lump sums see NATFHE's Your Pensions Guide, published in May 2000, or contact Teachers' Pensions (telephone 0845 6066166).

ILL-HEALTH RETIREMENT

You can take ill-health retirement if you become medically incapable of teaching due to illness. You will have to complete form 20PEN and submit form 18PEN from your medical doctor, and other medical evidence, to Teachers' Pensions. A panel of medical advisors will then recommend to Teachers' Pensions that medically you are incapable of teaching (you can find information on this on the Teachers' Pensions website, or in NATFHE's leaflet Advice on Applying for Ill Health Retirement).

Do note that if you are on an ill-health pension you will not be able to teach in any capacity, otherwise you lose this pension. Even if, over time, you are advised by your doctor that you are fit for different type of work, under the regulations Teachers' Pensions can review your state of health to see if it has improved enough to enable you to be fit to teach (you can find information on this on the Teachers' Pensions website).

If you receive ill-health pension you are likely to have had long-term absences from work and might even have exhausted the institution's sickness entitlement and found yourself on incapacity benefit. You should enquire at your local benefit office if you are not yet on IB.

For advice on applying for ill-health retirement, contact your NATFHE Regional Office. For information on state disability and incapacity benefits, contact the Department for Work and Pensions.