Early Retirement Reduction Buy Out (ERRBO) - 2015 NHS Pension Scheme
Normal Pension Age (NPA) in the 2015 NHS Pension Scheme is linked to your State Pension Age (SPA). This means your NPA can rise if the state pension age rises. An option exists in the 2015 NHS pension scheme to pay additional contributions to 'buy out' the reduction that would apply if you retire before your SPA and NPA.
This is known as an 'Early Retirement Reduction Buy Out' (ERRBO) agreement. The agreement can be for retirement 1,2 or 3 years before the SPA and NPA, however you cannot have an agreement that would lead you to retire before 65. For example, if your state pension age/normal pension age is 67, you can only take out an ERRBO agreement for 2 years to bring this to age 65.
To find out more and check your eligibility and how much a ERRBO may cost you, visit the NHS Pensions ERRBO page.
If your application for an ERRBO is made within three months of joining the 2015 Scheme, or by the 5th of July in any subsequent year, it will be effective in that year. If not, it will take effect from the following April.