If the member is retired in the IOE, it’s your responsibility for the cost of paying the members pension and lump sum early.
You must pay the capitalisation cost as a one-off payment.
NHS Pensions will invoice the employer the difference in cost between paying an Actuarially Reduced Early Retirement (ARER) pension and the pension that will be paid.
This will be issued at the time NHS Pensions authorise the award. A copy of the invoice is sent to NHS Pensions Finance.
Payment is due within one month of receiving the invoice. NHS Pensions will contact you if a response is not received within one month.
Read more information on retirement on our website.
Member is leaving 2 posts
If a member is leaving 2 posts, the employer who started the redundancy is responsible for meeting any employer capitalisation costs.
Member has died
If a member dies before capitalisation costs have been paid, costs must still be paid in full.