LGPS Rule of 85 question

Neasy

Hi there all. I am in the LGPS scheme and have a question re transitional R85 protections for benefits built up prior to 2008. Is it actually just "benefits built up prior to 2008" that are protected, or is it "benefits built up under the previous scheme" (LGPS 1997?). I ask because I have very few years pre 2008 but I am buying added years under pre-2008 terms. 

hyubh

Neasy said:

Hi there all. I am in the LGPS scheme and have a question re transitional R85 protections for benefits built up prior to 2008. Is it actually just "benefits built up prior to 2008" that are protected, or is it "benefits built up under the previous scheme" (LGPS 1997?). I ask because I have very few years pre 2008 but I am buying added years under pre-2008 terms. 

When did you take the added years contract out?

hyubh

hyubh said:

When did you take the added years contract out?

... because this will determine the answer to your question.

Neasy

Sorry hyubh didn't see this till now. 
IIRC, i started the AVC contract at the last moment in 2008, in fact because it started on my birthday I think even though it's under the previous rules, the contract started in 2009.

As the contract started after 2006 I understand that the Added Years I'm buying don't count towards my R85 calculation but my question is whether the benefits accrued themselves *benefit* from R85 protection.

Thanks so much for your time xx

Neasy

hyubh

Neasy said:

IIRC, i started the AVC contract at the last moment in 2008, in fact because it started on my birthday I think even though it's under the previous rules, the contract started in 2009.

AVC or added years contract...?

As the contract started after 2006 I understand that the Added Years I'm buying don't count towards my R85 calculation but my question is whether the benefits accrued themselves *benefit* from R85 protection.

Other way round, according the LGA's guidance for LGPS administrators (http://lgpslibrary.org/assets/gas/ew/85YRv1.12c.pdf) - while the added years count towards the 85, they won't themselves get the protection, i.e. they will have an NRA of 65 straight (other things being equal - there are a tiny number of members bulk transferred from the civil service scheme with a protected NRA of 60):

Membership purchased under an added years contract

Membership purchased under regulations 55 and 83 of the LGPS Regulations 1997 or equivalent previous Regulations (added years) should be treated as Part A Membership if the election was before 1 October 2006 and the contributions were due to cease before the member’s 65th birthday. Other Membership under Regulation 55 of the LGPS Regulations 1997 (where the contributions were due to cease on the member’s 65th birthday or where the contract was taken out between 1 October 2006 and 31 March 2008) should be treated as Part D2 Membership. [paragraph 7 of Schedule 2 to the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014]

The bit in the transitional regs referenced is here, whose text concerns what should rather than should not be counted: https://lgpsregs.org/schemeregs/tpregs2014/timeline.php#s2p1