The 85-Year Rule in the LGPS for Bedfordshire Pension Fund Members

The 85-year rule is a protection in the Local Government Pension Scheme (LGPS) that can reduce some of the reductions made to your pension if you take it earlier than your normal retirement age. You meet the rule if you were a member of the LGPS before 1 October 2006 and when your age plus your years of LGPS membership total 85. For many long-serving members of the Bedfordshire Pension Fund, this rule can make a real difference when planning early retirement.

 

To meet the rule, your numbers must look something like this:

• Age 60 + 25 years in the LGPS = 85

• Age 58 + 27 years in the LGPS = 85

 

If your age and membership add up to 85 or more, you may receive protection on some of the pension you accrued before 2014. The rule only applies to members who joined the LGPS before 1 October 2006, as the regulations changed to remove the rule from that date. It also only protects older parts of your pension, not everything you’ve accrued.

 

It’s also worth noting that even if you meet the 85-year rule earlier, it cannot normally be applied before age 60. For example, if you reach 85 at age 58, the protections would not usually apply until age 60, unless your employer agrees to allow the rule to be applied earlier.

 

This means:

• Benefits built before 2008 → usually get full protection

• Benefits built from 2008 to 2014 → could get some protection

• Benefits built after 2014 → not protected by the 85-year rule

 

This rule does not mean you can retire at 55 with a full pension. Although you can take your pension from 55, reductions normally apply. The 85-year rule simply helps reduce the reduction on the older parts of your pension if you meet the rule.

 

Example:

You are 60 years old with 25 years of membership.

You meet the 85-year rule.

 

This means:

• Your pension built before 2008 may be paid with no reduction

• Your 2008–2014 pension may have a smaller reduction

• Your post-2014 pension will still be reduced if taken early

If you are thinking about early retirement, it’s a good idea to request a pension estimate. This will show exactly how the rule applies to your own benefits and help you make a confident decision about your retirement plans.

 

 

85-Year Rule Protection Table (Bedfordshire Pension Fund)