Retirement
Members of the Network Pension Scheme may retire and draw their pension at the normal pension age of 66, earlier from the age of 56 with a reduction, or later up to the age of 72 with an increase. The Pension Service of the Velocity Interoperability Network is ready to receive retirement applications from 6 September 2026 and will make its first pension payments on 30 September 2026.
Retirement options. The five ways in which a pension may come into payment are set out below. Whichever applies, the procedure that follows is the same.
| Option | Age | Terms |
|---|---|---|
| Normal retirement | 66 | The pension is paid without reduction or increase. |
| Early retirement | 56 to 65 | The pension is reduced by the factor for the period between retirement and the age of 66. |
| Late retirement | 67 to 72 | The pension is increased by 5.2 per cent for each year, and proportionately for each part year, after the age of 66. |
| Flexible retirement | 56 or over | With the employer's agreement, up to 80 per cent of the pension is drawn, with the early retirement factor where applicable, while the member continues to work reduced hours and earn further pension. |
| Ill-health retirement | Any age | The pension is paid without reduction, and enhanced where the member cannot take any regular employment. The tiers are set out on the Benefits page. |
Early retirement factors. A pension that comes into payment before the age of 66 is reduced by the factor below for the number of years before that age. The factor for a part year is found by proportion. The factors are set by the Service on the advice of the scheme actuary and are reviewed at each valuation.
| Age at retirement | Years before normal pension age | Reduction |
|---|---|---|
| 65 | 1 | 4.6% |
| 64 | 2 | 8.9% |
| 63 | 3 | 12.9% |
| 62 | 4 | 16.6% |
| 61 | 5 | 20.1% |
| 60 | 6 | 23.4% |
| 59 | 7 | 26.4% |
| 58 | 8 | 29.3% |
| 57 | 9 | 32.0% |
| 56 | 10 | 34.5% |
The retirement procedure. The six steps below apply to every member, whether retiring at, before or after the normal pension age. Members who have reached the normal pension age at establishment may retire on any date from 6 September 2026 on giving the notice their employer requires.
Step 1: Ask for an estimate
At least six months before the date on which you intend to retire, write to the Service giving your name, membership number, employer and intended date. The estimate shows the pension payable at that date, the largest lump sum available and the pension remaining if it is taken. An estimate may be requested once in any scheme year without charge.
Step 2: Give notice to your employer
Give your employer the notice your contract requires, stating your intended last day of service. Your employer tells the Service that you are retiring and the date. Retirement takes effect on the day after your last day of pensionable service.
Step 3: Your employer confirms your last day of service
Within ten working days of your last day of service your employer sends the Service your final pensionable pay and contributions and confirms the date. The Service cannot issue an award until this confirmation is received.
Step 4: Complete the retirement declaration
The Service sends you the retirement declaration by email when it is told of your retirement. Return it with a copy of your identification, the details of the account into which your pension is to be paid, your choice of lump sum and, where you have a partner, the details needed for a survivor's pension.
Step 5: Receive your award letter
Within twenty working days of receiving the complete declaration and your employer's confirmation, the Service issues an award letter stating your annual pension, any lump sum, the date of first payment and the date of the first annual increase. Check the letter and tell the Service at once of any error.
Step 6: Receive your first payment
Pensions are paid monthly in arrears on the last working day of each month. The first payment is made on the first payment date after the award letter and includes any arrears from the day after your last day of service and your lump sum.
Service standards. The Service undertakes to meet the standards below and reports its performance against them quarterly.
| Stage | Standard |
|---|---|
| Retirement estimate | Within ten working days of the request |
| Retirement declaration issued | Within five working days of the employer's notice of the intended last day of service |
| Award letter | Within twenty working days of the later of the complete declaration and the employer's confirmation of the last day of service |
| First payment | On the last working day of the month following the month in which the award letter is issued, including arrears from the day after the last day of service |
| Lump sum | With the first payment |
Questions about retirement. The answers below reflect the rules in force on 6 September 2026.
Requests for an estimate, and any other question about retirement, may be sent to contact@pensions.gov.vin. For the pension and lump sum a member earns, see Benefits; for the rules on retirement, see Part 4 of the Scheme Rules; for questions about the scheme generally, see the frequently asked questions.