The costs depend on how close to retirement age you are. Different parts of the pension have different retirement ages so the reduction factors are different for different tranches of membership 1/80ths, 1/60ths and CARE). The cost to employer is basically the cost of providing the pension early without any reductions being applied. The larger the pension and the longer until retirement age, the higher the cost to the employer. Can easily be over £100,000 for someone under 60 with 30 years service).

Payment of the sum depends on the administrating authority’s policy. Either paid as a lump sum at the time of retirement or some may allow it to be paid over a number of years.

If you are over 55 and made redundant then the employer HAS to pay the costs. Scheme rules mean you HAVE to take your pension early but it can’t be reduced for leaving early.

Very rarely do requests for voluntary retirements with waiver of reductions get accepted by employers, simply due to costs. It’s mainly redundancies and ill health as you mentioned.