What is the 85 rule for pensions?

To have protection under the 85 year rule you must satisfy the following condition at the date you draw your pension benefits: Your age (in whole years) plus your scheme membership (in whole years) must add up to 85. If you work part-time, your membership counts towards the rule of 85 at its full calendar length.

Does the 85 rule still exist?

If you have rule of 85 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.

What does the 85 year rule mean?

The 85-year rule means you could choose to retire before the age of 65 (only with your employer’s permission if you are aged between 50 and 60) and receive unreduced pension benefits if your age and period of scheme membership are equal to or more than 85.

How do you find the Rule of 85?

To calculate the rule of 85, companies take your age and add it to your years of service. If those numbers add up to 85, you are eligible for early retirement. For example, a 55-year-old with 30 years of service would meet the standards of the rule of 85, because her age plus her years of service equals 85.

Is the rule of 85 a type of retirement?

The Rule of 85 is not a type of retirement. It is a way of checking whether a member’s pension would be reduced if it is paid early. What is the Rule of 85? Member’s whose age plus scheme membership (in whole years) equals 85 may be able to take their pension before their Normal Pension Age, without it being reduced for early payment.

When do you meet the rule of 85?

Rule of 85 only applies if you take your pension on or after age 60. So even if your meet the Rule of 85 before 60, your benefits would still be reduced if you took them before age 60. Membership – This is the period of time in calendar years that you have been a member of the pension scheme in the record that you are retiring from.

When to use the 85 year rule for spfo?

• Your protected membership plus your age in whole years adds up to 85 or more. • If you joined the LGPS before 1 April 1998 and the date you would have achieved 25 years’ membership is earlier than the date you satisfy the 85 year rule, the earlier date is used to assess the reduction for early retirement. This makes the reduction smaller.

What’s the rule of 85 for the LGPS?

Rule of 85 1 Your protected membership plus your age in whole years adds up to 85 or more. 2 If you joined the LGPS before 1 April 1998 and the date you would have achieved 25 years’ membership is earlier than the date you satisfy the 85 year 3 Any benefits accrued before 31 March 2020 will not be reduced.