Rule of 85
If you joined a Local Government Pension Scheme (LGPS) before October 2006, there is a way you may be able to avoid (or at least limit) the reductions on your pension – known as the Rule of 85.
Do you qualify?
You may be eligible if your age + the total number of years contributing to your pension scheme adds up to 85.
What is the Rule of 85?
The rule was originally introduced to protect people who had been paying into their pension for many years and wanted to take early retirement without worrying about payment deductions.
It protects LGPS members when their age, plus the number of years they’ve been a member of the scheme, adds up to 85 or more. This was known as the Critical Retirement Age (CRA), but because it was phased out in October 2006, you need to meet certain criteria in order to qualify.
Did you join your LGPS pension scheme before 1 October 2006?
Yes: you may eligible
No: you would not be eligible
Does your scheme service and age add up to 85?
Yes: you may eligible
No: you would not be eligible
Did you turn 60 before April 2016?
Yes: you may eligible
No: you would not be eligible
Did you turn 60 between April 2016 and March 2020?
Yes: you may eligible
No: you would not be eligible
Do you turn 60 after March 2020?
Yes: you may eligible
No: you would not be eligible
| Pension built up before 31 March 2008 | Pension built up 01 April 2008 – 31 March 2014 | Pension built up 1 April 2014 – 31 March 2016 | Pension built up 1 April 2016 – 31 March 2020 | Pension built up after 1 April 2020 | |
| Members born before 1 April 1956 | Protected | Protected | Protected | No protection | No protection |
| Members born between 1 April 1956 and 31 March 1960 | Protected | Partial protection | Partial protection | Partial protection | No protection |
| Members born on or after 1 April 1960 | Protected | No protection | No protection | No protection | No protection |
Admittedly, there’s a lot to take in. But don’t worry, our online pensions calculator works out any Rule of 85 protection automatically. Log in to PensionPoint today to see if you qualify.
There’s also more information on the Rule of 85 available on the LGPS website.
