Qualification for the "85 Year Rule"

The "85 Year Rule" was a method by which you (as a member of the LGPS), with a suitable amount of service and age, could elect to receive your benefits early (before age 65) yet avoid the normal early retirement reduction. The calculation to determine eligibility was relatively straight forward; your age plus LGPS membership (in whole years) when added together had to equal at least 85 (hence the rules name; "85 Year Rule"). As from 1st October 2006 however, the "85 Year Rule" is no longer a part of the LGPS regulations (although some scheme members have had their right to use the rule protected; read on for further details).

In order to still take advantage of the "85 Year Rule", you must have been a current member as at 30th September 2006 (the final day of entitling membership, prior to the rules removal on 1st October 2006). If you were not a member of the scheme at this time, your benefits will incur an actuarial reduction if paid before age 65.

If you were paying into the scheme on 30th September 2006, at least part of your retirement benefits can be paid early without incurring a reduction. The proportion of your benefits to escape the reduction will depend on certain criteria;

• If you will be age 60 or over by 31st March 2016 and choose to retire before age 65, then, provided you satisfy the ·85-year rule when you start to draw your pension, the benefits you build up to 31st March 2016 will not be reduced.
• If you will be under age 60 by 31st March 2016 and choose to retire before age 65, then, provided you satisfy the 85 year rule when you start to draw your pension, the benefits you build up to 31st March 2008 will not be reduced.
• If you will be aged 60 between 1st April 2016 and 31st March 2020 and meet the 85 year rule by 31st March 2020, some or all of the benefits you build up from 1st April 2008 will not have a full reduction.
• If you do not reach age 60 by any of the dates mentioned above, yet have membership prior to 30th September 2006 and would satisfy the "85 Year Rule" on retirement, any service you accrue from 1st April 2008 onwards shall be liable to a reduction but any service you have accrued prior to this date shall not.

There is an FAQ on the Office of the Deputy Prime Minister website covering the majority of questions you may have about the "85 Year Rule", plus more details on the withdrawal process can be found in this document from the DCLG.