390-500 Right to lower retirement age: Reduction in standard lifetime allowance
Where a member with a protected pension age below 50 takes a pension or lump sum at an age below the normal minimum pension age, the standard lifetime allowance (see ¶384-000) for the purpose of calculating any lifetime allowance charge (see ¶384-050) is reduced by 2.5 per cent for each complete year from the actual date of retirement to the normal minimum retirement age (FA 2004, Sch. 36, para. 19).
No reduction occurs however if the pension scheme concerned is one which is prescribed by the Prescribed Schemes and Occupations Regulations (SI 2005/3541, Sch. 1; basically, those for the armed forces, police and fire service).