Actuarially Reduced Notional Service Purchase

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Eureka

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I am at present seven years in to a thirteen year contract to purchase five years of notional service, by periodic payments. My intention was to retire at sixty, fulfilling the thirteen year contract with five years purchased. However, it looks like I will have to retire early due to ill health, leaving me with reduced number of years (roughly two) purchased, which will also be actuarially reduced.
Would it be possible to purchase extra years by lump sum at retirement, even though they will be actuarially reduced, to make up the five years I was initially allowed to purchase?

Regards
 
Hi. You need to check the terms of the scheme,I don't have it handy. Contact your Superannuation section and check. Also, if you have to retire early due to ill health, you may qualify for added years due to early retirement by reason of permanent infirmity. This may get you up to 6.75 extra years reckonable service for free. Again, call or email your Superannuation section. Best of luck, sorry you are having health difficulties.
 
Eureka said:
...notional service, by periodic payments...it looks like I will have to retire early due to ill health, leaving me with reduced number of years (roughly two) purchased, which will also be actuarially reduced.
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If you qualify for early retirement on health grounds I'm not aware that your pension should be actuarially reduced. Please check this as, with additional possibility of the award of extra years, this would have a significant impact on your retirement income. Talk to your union.
 
Thanks Slim and Oysterman...the NPS years, I believe, will be actuarially reduced, similar to "cost neutral early retirement". I do wish it was otherwise?
 
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