Retire on full benefits before your State Pension age by buying out the early retirement reduction factor

If you're a member of the NHS (Scotland) Pension Scheme 2015, your normal retirement age is your State Pension age. Depending on when you were born, your State Pension age is between the ages of 65 and 68.

Rather than retiring at your State Pension age, however, if you're member of the NHS 2015 Scheme, you can make additional contributions in order to buy out the actuarial reduction that would take place if you retired at 65 rather than at your normal pension age in the scheme.

If you purchase an Early Retirement Reduction Buyout (ERRBO) you'll need to buy this in monthly instalments.

If you're a salaried GP, your monthly payment would be deducted from your salary. If you're mainly employed as a self-employed GP or Dentist you'll need to inform PSD, so they can make the appropriate deduction. If you are a self-employed Locum who completes A and B forms then you must ensure that your income covers the cost of your superannuation contributions and your ERRBO.

The ERRBO is included in your £6,500.00 additional pension benefit but isn't included in your Annual Allowance calculation.

ERRBO contributions receive tax relief at source.

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