What is the 85 year rule?
The 85 year rule allows some members to retire before the age of 65 but after 60 with a lower percentage reduction, or in some cases no reduction at all to their pre 1 April 2014 benefits. The protection rights are explained in further detail below.
Satisfying the 85 year rule
You must have been a member of the fund before 1 October 2006, and:
At the date you draw your benefits, your age and membership in years adds up to 85 or more. For example, a member aged 60 with 25 years service could draw their benefits without suffering a reduction.
If you meet the 85 year rule by age 60:
- your benefits built up in respect of service before 1 April 2008 will be protected and payable from age 60 without any reduction for early payment
Am I a protected member?
This depends on certain factors, some employees have full protection, others have partial protection:
- If you meet the rule of 85 and were born before 1 April 1956 you can retire at age 60 and the benefits you build up to 31 March 2016 will not be reduced
- If you meet the 85 year rule and were born between 1 April 1956 and 1 April 1960, you can retire at age 60 with some protection from a full early retirement reduction, on your benefits built up from 1 April 2008 to 31 March 2020
- If you were born after 1 April 1960, you can retire at age 60, but the benefits built up from 1 April 2008 will have the full early retirement reduction applied.
The earliest you can retire without incurring a reduction is age 60, if you wish to retire before the age of 60 (but not before 55), the rule of 85 protection would not apply.
If you do not meet the 85 year rule, your benefits will be subject to a reduction as set out in the reduction table.
The rules on deciding whether you have protection under the 85 year rule are quite complex, it is not advisable to make a decision on your retirement without contacting the pensions section first.