What Is the Rule of 85, and How Does It Affect Retirement?

By Staff WriterLast Updated Mar 26, 2020 5:40:12 AM ET
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The Local Government Pension Scheme 2014 reports that the Rule of 85 determines how someone's retirement benefits are decreased if the person decides to retire before the age of 65. Under the Rule of 85, a person's age at the time benefits are drawn plus the number of years of membership in a pension plan should equal 85 or more to avoid a reduction in benefits.