The 85 year rule

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If you have 85 year rule protection this will continue to apply from April 2014

The only occasion where this protection does not automatically apply is if you choose to voluntarily draw your pension on or after age 55 and before age 60, further information is below.

The 85 year rule protects some or all of your benefits from the normal early payment reduction. To have 85 year rule protection you must have been a member of the LGPS on 30 September 2006. The 85 year rule is satisfied if your age at the date when you draw your pension plus your Scheme membership (each in whole years) adds up to 85 years or more.

  • If you would not satisfy the 85 year rule by the time you are 65, then all your benefits are reduced if you choose to draw your pension before your Normal Pension Age. The reduction will be based on how many years before your Normal Pension Age (age 65 for pension built up to April 2014 and before your State Pension Age for pension built up from April 2014) you draw your benefits.
 
  • If you will be age 60 or over by 31 March 2016 and choose to draw your pension before your Normal Pension Age, then, provided you satisfy the 85 year rule when you start to draw your pension, the benefits you build up to 31 March 2016 will not be reduced.
 
  • If you will be under age 60 by 31 March 2016 and choose to draw your pension before your protected Normal Pension Age, then, provided you satisfy the 85 year rule when you start to draw your pension, the benefits you’ve built up to 31 March 2008 will not be reduced. Also, if you will be aged 60 between 1 April 2016 and 31 March 2020 and meet the 85 year rule by 31 March 2020, some or all of the benefits you build up between 1 April 2008 and 31 March 2020 will not have a full reduction.

 

The 85 year rule and drawing your pension on or after age 55 and before age 60

You can choose to voluntarily draw your pension on or after age 55, and before age 60, without the need for your employer’s permission.

The 85 year rule will not automatically be applied if you decide to draw your benefits under this new option. However, your employer can exercise a discretion to apply it. If they do, and you meet the 85 year rule at the date of drawing your benefits, the rules set out in the second and third bullet points above will apply.

If your employer does not exercise the discretion to apply the 85 year rule, the benefits referred to in the second and third bullet points above, do not apply in full.

Instead if you meet the criteria in bullet point two above you will have a reduction on all your membership based on the date you draw your benefits to age 60. If you meet the criteria in bullet point three above you will have a reduction on benefits built up to 31 March 2008 based on the date you draw your benefits to age 60 and a reduction on the remainder of your membership based on the date you draw your benefits to your Normal Pension Age.

You can ask your employer what their policy is on this discretion.