85 year rule

gameofthrones

Hi I am new to this
just a quick question i have applied for flexi retirement to take a lump sum continue to work pay mortgage of early whilst having an income.
This request was declined by our HR department as its a considerable cost to the service, my other option is to retire early and take a lump sum of my pension - i do not really understand this to me feels discriminatory as i cannot do flexi retirement to help decide whether it is for me and having additional time at home with the added bonus of no mortgage how is this fare just because part of my pension meets the 85 year rule 

Brie

How old are you and what is the normal retirement date for the work pension?  Defined benefit or defined contribution scheme?  Does your employer have more than one pension scheme running currently.

I'm not sure what you mean by flexi retirement.  Do you mean that you want to go from full to part time?  Maybe drop from 5 to 4 days a week or similar?  If it's a case of reducing your hours then the employer has the right to decline your application - unless you have a legitimate reason for doing so, like becoming a carer to your disabled child/spouse for instance.  

As I understand it there's nothing to stop you opting out of your occupational pension scheme no matter what type it is.  Some employers have staff on an old DB scheme while newer staff are on a cheaper DC scheme.  I've known people to opt out of their old DB scheme and start collecting their pension early on that and join the newer DC scheme while they continue to work for the same employer, perhaps with less hours.

xylophone

LGPS presumably.

https://www.lgpsmember.org/your-pension/planning/taking-your-pension/

Flexible retirement is a way to move gradually into retirement. You can take flexible retirement:

• from age 55 onwards
• if you have met the two-year vesting period, and
• only if your employer agrees.

Under flexible retirement, you reduce your hours or move to a less senior position and take some or all of the pension benefits you have built up. You must take any benefits you built up before 1 April 2008.

You can ask your employer about their policy on flexible retirement.

The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028. This will not apply to ill health retirements.

Silvertabby

Must be LGPS with R85 protections in respect of pre 2008 service.

Although LGPS benefits may now be taken (subject to voluntary reductions)  from age 55, the NRA for eligible R85 accruals remains age 60.

In the case of flexible retirement before age 60, the rules require the employer to pay the strain costs so that pre 2008 benefits are paid without any actuarial reductions.  This can run to many thousands of pounds, and thus is a common reason for refusing flexi retirement applications before 60.