The Court of Appeal has overturned what was to many a surprising decision of the High Court and confirmed that when a company pension scheme member takes benefits early (at 60 rather than 65), the benefits may be subject to an actuarially-calculated reduction for the pension income taken early.
The Court ruled that the earlier decision meant those who took pensions early would benefit from a ‘windfall’ that was unfair on the company and the other pension scheme members.