DB Pension revaluation for deferred members, early retirement calculation

NoMore

Having just became a deferred member of my Final Salary Scheme (one of the few still open private ones), I am checking my expected pension if I chose to retire early.

I have a copy of the early retirement factors for both Active and Deferred members, Active is just a straight 4% per year, however deferred is more complicated, the factors are not linear and there is a note underneath, that I'm seeking clarity on.

For relevant deferred, the factor should be applied to pension at Normal Retirement Date (NRD) /or earlier date member can take an unreduced pension. The pension should be increased between Date of Leaving (DOL) and that date (URD) as follows:

• between DOL and date of calculation, pension should be increased in line with known revaluation; and;

• between date of calculation and URD a rate of 2.6%pa should be used for future increases and 1.5% pa for CPI linked future increases.

I have a NRD of 65, and a URD of 60 with revaluation using CPI. I have just become deferred at age 53. So does the above mean, if I want to take my pension at 55. I will get CPI increase up to 55 on my pension, then they calculate an increase to age 60 using 1.5% pa and then apply the early retirement factor for 55 to that number? If assume whole years, then that's a 7.7% increase for the 5 years to 60 (1.5%^5)

Is this usual? I thought they would only calculate inflation increases to date of calculation (i.e. when I want to start it) not predict future inflation and add that.

If it is then despite the Early retirement factors being lower than the active, with this correction they don't end up too far off the actives.