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Asked by:
Martin Whitfield, MSP for South Scotland, Scottish Labour
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Date lodged:
10 May 2024
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Current status:
Answered by Ivan McKee on 23 May 2024
To ask the Scottish Government what options are available for early retirement under the Scottish Teachers' Pension Scheme (STPS), and how any such options impact the final pension amount that a teacher receives.
There are three early retirement options available to members of the Scottish Teachers’ Pension Scheme who have reached normal minimum pension age:
- Premature Retirement is an option if a member is made redundant or retires in the interest of efficiency. The pension would be actuarially reduced because the member is retiring early and employer must agree to make up the shortfall to the full pension amount. Therefore, there is no impact on the final pension amount the member receives.
- Voluntary Early Retirement is where the member chooses to receives an actuarially reduced pension. The benefits are reduced to take into account the fact the pension will be paid over a longer period of time than a normal retirement pension.
- Phased Retirement allows members to take up to 75% of their pension while reducing their working commitment. To do this, members must reduce their pensionable salary by at least 20% for a minimum of 12 months. Any percentage of pension benefits taken before normal pension age would be subject to an actuarial reduction.