You may have protections regarding your pension. It depends on when you joined the scheme.
Joined before 1 October 2006
You may be protected by the 85 year rule. If you retire before normal pension age your pension will be reduced to take into account of being paid early. If you meet the 85 year rule some of your pension may be protected from reductions. Find out about the 85 year rule
Joined before 1 April 2014
Protection for everyone
Your pension benefits built up to 31 March 2014 are protected. The LGPS changed from 1 April 2014 from a final salary scheme to a Career Average Revalued Earnings (CARE) scheme. Your benefits built up to 31 March 2014 will still be calculated on your final salary pensionable pay when you leave.
From 1 April 2014 the age at which you can retire and take your full benefits changed from age 65 to your State Pension age (SPa) (or age 65 if later). If you retire before then your pension may be reduced to take into account of being paid earlier. The reductions are based on how many years earlier you take your pension. Your pension up to 31 March 2014 has the protected normal pension age of 65 therefore any reductions will be based on how many years you retire before age 65.
Your pension built up to 31 March 2014 cannot be taken separately from your pension built up after 1 April 2014. All of your pension must be taken at the same time at the date of your retirement.
Example
You have a SPa of 66. You voluntarily retire at age 64.
Your pension built up to 31 March 2014 will have reductions based on 1 year (to age 65).
Your pension built up from 1 April 2014 will have reductions based on 2 years (to age 66).
All your pension will be paid together at age 64.
Alternatively you could wait and receive your pension benefits in full from your 66th birthday.
If you retire after normal pension age your pension is increased to take into account of being paid later.
The underpin
Protections are in place to ensure you receive a pension at least equal to that which you would have received before the scheme changed. This is known as the underpin.
You are protected by the underpin if you:
- built up pension benefits in the LGPS or another public service pension scheme before 1 April 2012
- were a member of the LGPS in the remedy period – between 1 April 2014 and 31 March 2022
- were under age 65 during the remedy period, and
- did not have a disqualifying gap. A disqualifying gap is a period of more than 5 years when you were not paying into the LGPS or any other public service pension scheme.
If you are covered by the underpin, we carry out a check at the time you take your pension. We check that the pension you have built up in the remedy period is at least equal to that which you would have received had the scheme not changed on 1 April 2014. If it is not at least equal, the difference is added to your pension account when you take your pension benefits.
If you have been in the 50/50 section at any time, the calculations are made as though you had always been in the main section. Find out more information about the 50/50 section
The underpin removes the discrimination found in the McCloud court case. The Local Government Association (LGA) have produced information about the McCloud remedy for members. It includes key dates, FAQs, and an online tool to find out if you are affected. Find out about the McCloud remedy for the LGPS You do not need to take any action. If the McCloud remedy impacts you, we will contact you. Find out how Kent Pension Fund are dealing with the McCloud remedy