Paying in before 1 April 2014

Your pension built up before 1 April 2014 has a protected Normal Pension Age, which for almost all is age 65. If you retire and draw all of your pension at your protected Normal Pension Age, the pension built up in the scheme before 1 April 2014 will be paid in full.

If you choose to take your pension before your protected Normal Pension Age the pension you have built up in the scheme before 1 April 2014 will normally be reduced, as it's being paid earlier. If you take it later than your protected Normal Pension Age it will be increased because it's being paid later.

The amount of any reduction or increase will be based on how many years earlier or later than your protected Normal Pension Age you draw the pension you have built up in the scheme to 31 March 2014.

The benefits you build up in the career average scheme from April 2014 have a Normal Pension Age linked to your State Pension Age (but with a minimum age of 65).

You cannot take your benefits built up to April 2014 separately from the benefits you build up from April 2014. All your pension would have to be drawn at the same time (except in the case of Flexible Retirement).

Rule of 85

If you have any protection under the rule of 85 this will continue to apply from 1 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.

The rule of 85 protects some of your benefits from the normal early retirement reduction if you are claiming your benefits before your Normal Pension Age. To have any 85 year rule protection you must have been a member of the Local Government Pension Scheme (LGPS) on 30 September 2006. The rule of 85 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.

For a more detailed understanding of your own position you should contact the Berkshire pensions team directly.

Rule of 85 and drawing your pension on or after age 55 and before age 60

You can choose to voluntarily retire and draw your pension on or after age 55 and before age 60 without the need for your employer's permission. The rule of 85 will not automatically be applied if you decide to draw your benefits under this scenario but your employer can exercise their discretion to apply it.

Please ask your employer what their policy is on exercising the discretion to apply the rule of 85 to benefits drawn before age 60.

Underpin

Protections are in place if you are nearing retirement to ensure that you will get a pension at least equal to that which you would have received in the scheme had it not changed on 1 April 2014. This protection is known as the 'underpin'.

The 'underpin' applies to you if you were:

• paying into the Scheme on 31 March 2012
• you were within 10 years of your Normal Pension Age on 1 April 2012
• you haven't had a disqualifying break in service of more than 5 years
• you've not drawn any benefits in the LGPS before Normal Pension Age
• you leave with an immediate entitlement to benefits

The references in this underpin section to Normal Pension Age are to your protected Normal Pension Age under the 2008 scheme - normally age 65.

If you are covered by the underpin a calculation will be performed at the date you cease to contribute to the Scheme, or at your Normal Pension Age if earlier, to check that the pension you have built up (or, if you have been in the 50/50 section at any time, the pension you would have built up had you always been in the main section of the scheme) is at least equal to that which you would have received had the scheme not changed on 1 April 2014. If it isn't, the difference will be added to your pension. If you are covered by the underpin, your Pension Fund will carry out the underpin check when you leave the scheme.

Important: When the Government reformed public service pension schemes in 2014 and 2015, older members were protected from the changes. In December 2018, the Courts ruled that younger members of the judges’ and firefighters’ pension schemes had been discriminated against because the protections did not apply to them.

This ruling is called the McCloud judgment after a member of the judge’ pension scheme involved in the case.

The rules of all public service pension schemes, including the LGPS, changed from 1 October 2023 because of the ruling. The changes are known as the McCloud remedy and they remove the age discrimination found in the McCloud judgment.
 

You can find out more about the McCloud Remedy by visiting our McCloud update section of this website.