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Early payment of a preserved (deferred) award

There are certain circumstances in which a preserved award may be paid before the retiring age.
These include when a former member:
  • opts for an actuarially reduced pension; or
  • suffers from ill health; or
  • proves there are compelling grounds for early payment.

Actuarially reduced retirement

Former members who left the Northern Ireland Civil Service (NICS) before the retiring age can opt to receive a reduced pension and reduced lump sum at age 50 or later (55 for members whose service started on or after 6 April 2006). The benefits are reduced due to the fact they are being paid early – the amount of reduction depends on your age.

Ill health grounds

A preserved award may be paid early on ill health grounds:
  • when a former member falls ill after leaving the NICS (this also applies to someone who was ill before leaving the NICS and who can demonstrate a deterioration in health since leaving);
  • when a former member who has opted out of the Principal Civil Service Pension Scheme [PCSPS(NI)] is to be retired on medical grounds.
If you apply under these terms you will be referred to the Occupational Health Service, who must be satisfied that the illness would have led to medical retirement if the former member had remained in the NICS. If successful the preserved pension and lump sum will be put into payment immediately. If life expectancy is less than 12 months the pension may be commuted to receive an increased lump sum.

Compelling personal grounds

A preserved award may be paid early if a member is age 50 or over (55 for members whose service started on or after 6 April 2006) and there are compelling personal grounds such as:
  • The member or former member is facing such personal difficulties or problems as to be prevented from following any form of paid employment, either full time or part-time.
  • It must not be possible to make any reasonable alternative arrangements to overcome the immediate circumstances giving rise to the request (for example, employing a nurse or daily help when a dependant relative needs full-time care and attention.
  • The financial position must be such that retirement would be impractical unless the pension and lump sum were brought into payment immediately.
You may apply for the award to be paid at the time of resignation or any time after.
Application under any of the circumstances does not guarantee approval for early payment.

Find out more

If you would like more information on any of the circumstances mentioned you can contact the Member Administration Section. You can find their number in the contact us section.