Local Government Pension Rule of 85

Mikey481

Silvertabby said:

There was a time when R85 protections still applied to some post 2008 accruals, on a sliding scale.  But OP is way too young to fall into that category.  In OP's case, any R85 protections only apply to pre 2008 benefits, and are still linked to a minimum retirement age of 60.  

My wife is due to retire next year at 62 and will meet the R85 protection was interested in what circumstances would post 2008 accrual be subject to protection thanks

hyubh

Mikey481 said:

Silvertabby said:

There was a time when R85 protections still applied to some post 2008 accruals, on a sliding scale.  But OP is way too young to fall into that category.  In OP's case, any R85 protections only apply to pre 2008 benefits, and are still linked to a minimum retirement age of 60.  

My wife is due to retire next year at 62 and will meet the R85 protection was interested in what circumstances would post 2008 accrual be subject to protection thanks

Be four years older for tapered protection, or 8 years older to get full protection. So... not possible.

uih039

May I please piggyback on this thread?

My wife joined LGPS as a Teaching Assistant on 1st September 2004. She is considering a retirement date of 1st September 2026. Her date of birth is 2nd April 1963. I think this would mean she just qualifies for the Rule of 85. Am I correct?

If so, is it possible for someone to give an indication of the £ impact? Current full time salary in her TA role is £29.5k and looking back, her salary in 2005/2006 fiscal year was around £11k which may be relevant.

Many thanks.

hyubh

uih039 said:

May I please piggyback on this thread?

My wife joined LGPS as a Teaching Assistant on 1st September 2004. She is considering a retirement date of 1st September 2026. Her date of birth is 2nd April 1963. I think this would mean she just qualifies for the Rule of 85. Am I correct?

The rule of 85 comes into play because she joined before October 2006. However it does so only for pre-April 2008 pension and lump sum, because she was born after 31/3/60. Plus it will take until autumn next year before she meets the magic 85.

If so, is it possible for someone to give an indication of the £ impact? Current full time salary in her TA role is £29.5k and looking back, her salary in 2005/2006 fiscal year was around £11k which may be relevant.

There will only be one final pay figure applicable, so her salary in 2006 is irrelevant. The rule of 85 solely concerns whether an actuarial reduction is due or not. So assuming she drew her benefits in autumn 2026, she would have no actuarial reduction on the Sept 2004 to March 2008 part of her pension, a small one for going two years early in her April 2008-March 2014 pension, and a larger one for going 4 years early on her CARE pension. However in falling under the 'McCloud' remedy, her 2014-2022 CARE pension will have a final salary underpin. So potentially it will be, 2004 to 2008 pension: no actuarial reduction; 2008-2022 pension: small actuarial reduction; 2002-2026 pension: larger actuarial reduction. 

uih039

hyubh said:

uih039 said:

May I please piggyback on this thread?

My wife joined LGPS as a Teaching Assistant on 1st September 2004. She is considering a retirement date of 1st September 2026. Her date of birth is 2nd April 1963. I think this would mean she just qualifies for the Rule of 85. Am I correct?

The rule of 85 comes into play because she joined before October 2006. However it does so only for pre-April 2008 pension and lump sum, because she was born after 31/3/60. Plus it will take until autumn next year before she meets the magic 85.

If so, is it possible for someone to give an indication of the £ impact? Current full time salary in her TA role is £29.5k and looking back, her salary in 2005/2006 fiscal year was around £11k which may be relevant.

There will only be one final pay figure applicable, so her salary in 2006 is irrelevant. The rule of 85 solely concerns whether an actuarial reduction is due or not. So assuming she drew her benefits in autumn 2026, she would have no actuarial reduction on the Sept 2004 to March 2008 part of her pension, a small one for going two years early in her April 2008-March 2014 pension, and a larger one for going 4 years early on her CARE pension. However in falling under the 'McCloud' remedy, her 2014-2022 CARE pension will have a final salary underpin. So potentially it will be, 2004 to 2008 pension: no actuarial reduction; 2008-2022 pension: small actuarial reduction; 2002-2026 pension: larger actuarial reduction. 

Many thanks for this clear and comprehensive explanation. I have emailed the fund administrators (WYPF) asking for the impact on her pension. It looks like their online calculator does not take R85 into account as I ran two pension quotes, one just before and one just after R85 comes into effect and there was almost no difference. I do realise this will only give a very small additional pension but any extra is always useful!

Mikey481

uih039 said:

May I please piggyback on this thread?

My wife joined LGPS as a Teaching Assistant on 1st September 2004. She is considering a retirement date of 1st September 2026. Her date of birth is 2nd April 1963. I think this would mean she just qualifies for the Rule of 85. Am I correct?

If so, is it possible for someone to give an indication of the £ impact? Current full time salary in her TA role is £29.5k and looking back, her salary in 2005/2006 fiscal year was around £11k which may be relevant.

Many thanks.

My wife has almost identical service and age so very useful info
Can I please ask a supplemental question as she went from five to four days sept 2023 can someone remind me how she can request that the final salary used is the most beneficial seem to remember reading about rule 10 ?

Chloe_G

I agree that the online calculator does not take R85 into account.  

Silvertabby

Mikey481 said:

uih039 said:

May I please piggyback on this thread?

My wife joined LGPS as a Teaching Assistant on 1st September 2004. She is considering a retirement date of 1st September 2026. Her date of birth is 2nd April 1963. I think this would mean she just qualifies for the Rule of 85. Am I correct?

If so, is it possible for someone to give an indication of the £ impact? Current full time salary in her TA role is £29.5k and looking back, her salary in 2005/2006 fiscal year was around £11k which may be relevant.

Many thanks.

My wife has almost identical service and age so very useful info
Can I please ask a supplemental question as she went from five to four days sept 2023 can someone remind me how she can request that the final salary used is the most beneficial seem to remember reading about rule 10 ?

The final salary link only applies to your wife's pre 2014 service.  The figure used will be the whole time equivalent of her contractual pay, and so won't be affected by her recent reduction in hours.

However, under CARE, only the actual salary is used, so she will be accruing CARE benefits at a lower rate due her reduction in hours/salary.  This isn't covered by the 'best year' rule.