85yr Rule & Redundancy

kathyh67

Hi,

I am in the LGPS and hit the 85yr rule for retiring in October this year (2018),
I will be 58 and will have been in the pension for 27 full years, I was born October 1960 so understand there may be some slight reductions (as born after 01/04/1960).

I am in a bit of a delemer as I will also being made redundant in November this year.

As I am over 55 I know I can access my pension through redundancy & there will be no penalties to what I have paid so far.

The question I want to ask is: as I will hit the 85 yr rule in October - will I qualify for my pension being on the 85yr rule & not just what I will have contributed up till November this year - I know it’s comlicated & hope the above makes sense to someone.

Thanks

Teaandscones

kathyh67 wrote: »

Hi,

I am in the LGPS and hit the 85yr rule for retiring in October this year (2018),
I will be 58 and will have been in the pension for 27 full years, I was born October 1960 so understand there may be some slight reductions (as born after 01/04/1960).

I am in a bit of a delemer as I will also being made redundant in November this year.

As I am over 55 I know I can access my pension through redundancy & there will be no penalties to what I have paid so far.

The question I want to ask is: as I will hit the 85 yr rule in October - will I qualify for my pension being on the 85yr rule & not just what I will have contributed up till November this year - I know it’s comlicated & hope the above makes sense to someone.

Thanks

The 85 year rule is discretionary for the employer until the age of 60 and in practice employers don't allow it so you are wrong about there being no penalties for retiring now. The 85 year rule also only applies to service up to 31 March 2008 for your age.

BUT in your case it doesn't matter if you are made redundant as there will be no actuarial reductions on any of your service, even that after 2008 which would have been based on age 65 or 67.

Note this only applies to the service you have actually accrued ie the 27 years plus whatever time until you are made redundant.

You shouldn't be in a dilemma; just hang on until you are made redundant.

hyubh

kathyh67 wrote: »

I will be 58 and will have been in the pension for 27 full years, I was born October 1960 so understand there may be some slight reductions (as born after 01/04/1960).

I am in a bit of a dilemma as I will also being made redundant in November this year.

As Teaandscones says, an age 55 or over redundancy causing an early retirement with no actuarial reduction has been part of the scheme rules for quite a long time, so the 'strain cost' due from the employer to the pension fund will have been factored into the decision to let you go. All qualifying for an unreduced pension at 60 does in this situation is make the strain charge lower than it would have been, but from your point of view that's academic.