Retirement

If you have rule of 85 protection 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 or all of your benefits from the normal early payment reduction. To have rule of 85 protection you must have been a member of the 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.

Working out how you are affected by the rule of 85 can be quite complex, but here is some information to help you work out your general position when you draw your benefits. For a more detailed understanding of your own position you can contact the pension team directly on 01628 796 668.

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 (protected Normal Pension Age for pension built up to April 2014 and new Normal Pension Age linked to 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 were under age 60 before 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 were 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.

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

You can choose to voluntarily draw your pension on ceasing your employment from age 55 without the need for your employer's permission. However if you are intending to draw your pension before the age of 60 any protection you have under the 85-year rule regulations will not automatically be applied to your benefits. However your employer can exercise their discretion to switch the 85-year rule on for you. If they do, and you meet the rule of 85 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 rule of 85, the protections referred to in the second and third bullet points above do not apply in full. Please contact your employer if you wish to have this discretion applied. 

Please Note: If you are resigning from your employment and it is your intention to claim your pension earlier than your Normal Pension Age the pension team require a minimum of three months written notice from you. You can email your notice to info@berkshirepensions.org.uk