85-year rule

The 85-year rule is not a rule which allows you to retire early.  It is a rule which means that you can take some of your pension benefits without them being reduced for early payment.

Do I qualify for 85-year rule protection?

If you were in the LGPS between 01/04/1998 and 30/09/2006, your pension benefits may qualify for some level of 85-year rule protection:

1. When you reach age 60, and
2. When your age and length of LGPS membership add up to 85.

When you are ready to retire, you must meet both conditions to qualify.

I meet both conditions and I was in the scheme at that time - what do I get?

The 85-year rule was removed from the LGPS in 2005, and since then, protection has been tapering away. The number of people who still benefit from the 85-year rule is therefore reducing.

The current rules are below:

1. If you do not meet both the criteria above, you do not qualify for the 85-year rule. All your benefits are reduced if you choose to draw your pension before your Normal Pension Age

2. If you were age 60 or over on 31/03/2016 and you meet both criteria above - the benefits you built up before 31 March 2016 will not be reduced
3. If you were under age 60 on 31/03/2016 and you meet both criteria above - the benefits you built up before 31 March 2008 will not be reduced
4. If you were aged 60 between 1 April 2016 and 31 March 2020 and you meet both criteria above 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.

Can I have an estimate of my pension please?

If you meet the 85-year rule, these protections are automatically taken into account on your annual benefit statement, on calculations run on My Oxfordshire Pension and on any estimates you receive from the Pensions team.

Please note:

The 85-year rule is a complex set of rules, and this summary cannot cover every circumstance. In the event of a dispute, the correct regulation will apply. Please note the following:

• Your level of protection may be affected by a number of circumstances, such as multiple employments, merging records, aggregations, transfers in from other LGPS funds, flexible retirement, employer discretion etc. This is not an exhaustive list. We recommend you take financial advice and ensure you have a full understanding before making any decisions.
• Your age and scheme membership are both measured in full years for this purpose. Part years do not count.
• If you work part-time, your membership counts towards the 85-year rule at its full calendar length.
• If you are a deferred member, your increasing age and notional membership continues to build up to count towards the 85-year rule.

There is more information about the 85-year rule at https://www.lgpsmember.org/your-pension/planning/taking-your-pension/#the-85-year-rule

Please refer to https://www.lgpsmember.org/2023/07/07/early-retirement-reductions/ for more information about early retirement reductions.