Planning Your Retirement - THE LOCAL GOVERNMENT PENSION ...

If you choose to retire before age65, and you satisfy the 85 year rulewhen you draw your benefits, then:Members who joined prior toOctober 2006 who attain age 60by 31 March 2016, have thebenefits they have accrued up to31 March 2016 fully protectedunder the 85 year rule.Members who joined prior toOctober 2006 who reach age60 between 1 April 2016 and31 March 2020, receive partial85 year rule protection ontheir benefits accrued up to31 March 2020; the nearer to1 April 2016 that they attain age 60,the greater the level of protection.Members who joined prior toOctober 2006 who reach age60 on or after 1 April 2020,only have 85 year rule protectionin respect of their membershipbefore 1 April 2008.The earliest retirement date for allmembers in respect of membershipfrom 1 April 2020 will be age 65.ExampleA woman retires at age 61 on31 December 2007 with 24 yearscontinuous membership in the LGPS.She was born before 1 April 1956and all her membership is before31 March 2016. She satisfiesthe 85 year rule on retirement(61 + 24 = 85), so her benefits arenot reduced for early payment.Let’s assume she retired a year earlier,aged 60 with 23 years membership.In that case, she would not havesatisfied the 85 year rule onretirement (60 + 23 = 83), so herbenefits are reduced. She wouldhave satisfied the 85 year ruleby age 61, so the reduction isbased on her choosing to receiveher benefits 1 year early and herpension and lump sum would bereduced as follows:Pension reduction: 5%Lump sum reduction: 2%23