Rule of 85 Transitional Protection

hyubh

Johnnyboy11 wrote: »

I have a deferred pension, predominantly pre 2008, which I think I can voluntarily start at age 56 when I meet R85, albeit with a 4-year actuarial reduction (about 20%). Not sure I will start it early, but it's nice to know that I can.

Well, the 85 year rule is a completely separate matter from when you can draw your pension without employer consent. Assuming you're in England or Wales, whether you are a 2008 or 2014 scheme leaver, you can now choose to draw your pension (actuarially reduced) from age 55 regardless of any 85 year rule protections.

However, as you suggest, you will likely only benefit from meeting the 85 year rule from age 60, since 'turning it on' if you meet the magic 85 before then is an employer discretion that is unlikely to be granted (since it will probably cost the employer to do so).

AlanP_2

Dunnsdale wrote: »

Yes it does seem rather complicated. On the last annual statement a figure is given for " An annual pension at 31st March 2018 of xxxx". Would this figure take into account all the related intricacies and adjustments of the individuals circumstances regarding R85 etc?

I don't think R85 would be relevant to that calculation. That is telling you what pension you have accrued as at that date.

Whether you already qualify for some R85 protection or not it won't affect the value as at 31 March 2018.

R85 calculations come into effect when you decide you would like to take pension to arrive at correct payment value for both reduced and unreduced elements.

Crabby

my wife has 35 years service and hopes to retire this year at 58. If she leaves her pension till she is 60, will she only take a hit on her post 2008 pension?

Silvertabby

Crabby wrote: »

my wife has 35 years service and hopes to retire this year at 58. If she leaves her pension till she is 60, will she only take a hit on her post 2008 pension?

Yes .

margaretx9

Crabby wrote: »

my wife has 35 years service and hopes to retire this year at 58. If she leaves her pension till she is 60, will she only take a hit on her post 2008 pension?

Yes - she of course meets the 85 year rule now. But for the reasons stated above it makes sense for her to wait until she is 60 to retire.