Twoshort,
The first option the VEC have advised is known as preservation of benefits, you would not get your pension and lump sum paid until age 60.
Homeboy is referring to Cost Neutral Early Retirement (I am presuming it is available in VEC), where retiring before 60 and taking this option as advised, would mean that you would receive actuarially reduced benefits straight away.
The other option you have obviously is not retiring until age 60, however if this means that you do not retire until after 31st Dec 2011 your benefits will be based on pay since paycuts.
Evening