At a Glance
✓ The 85 Year Rule may reduce or remove some early retirement reductions.
✓ Only certain members who built up benefits between 1 April 1998 and 1 October 2006 are eligible.
✓ Your age and LGPS membership must add up to 85 or more.
✓ The rules are complex and the level of protection depends on your individual circumstances.
What is the 85 Year Rule?
The 85 Year Rule is a transitional protection that may reduce or remove some of the reductions that would normally apply if you take your pension before your Normal Pension Age.
To qualify, you must have built up LGPS benefits between 1 April 1998 and 1 October 2006 and satisfy the 85 Year Rule when you retire.
How is the 85 Year Rule calculated?
You satisfy the 85 Year Rule when the total of your:
- Age; and
- Length of LGPS membership;
equals 85 or more.
Age: 60
LGPS Membership: 25 years
60 + 25 = 85
What does the 85 Year Rule mean for me?
If you qualify, some or all of your benefits may be paid with a smaller reduction than would normally apply, or with no reduction at all.
The level of protection depends on several factors, including:
- Your date of birth.
- When you built up your LGPS benefits.
- When you choose to retire.
Because the rules are complex, Gwynedd Pension Fund will calculate any protection that applies to your benefits.
Does the 85 Year Rule apply in every case?
No.
If you voluntarily retire between ages 55 and 60, 85 Year Rule protection will not normally apply automatically. However, your employer may decide to allow this protection in accordance with its discretionary policy.
If you voluntarily retire after age 60 and meet the relevant conditions, any applicable 85 Year Rule protection will normally be applied.
What if I am made redundant?
If you are made redundant or retire in the interests of efficiency of the service at age 55 or over, your benefits will normally be paid immediately without any early retirement reductions.
In these circumstances, the 85 Year Rule is not usually a factor because the reductions do not apply in the first place.
What if I retire because of ill health?
If you qualify for ill-health retirement, your benefits will be paid immediately without reduction and may be enhanced depending on your circumstances.
The 85 Year Rule does not normally apply to ill-health retirement.
What if I have deferred benefits?
If you have left the LGPS with deferred benefits, the 85 Year Rule may still apply to you. Although your membership of the scheme stops when you leave, your age continues to increase. This may mean that you satisfy the 85 Year Rule at a later date and qualify for protection on part of your benefits when you choose to take them.