Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Galoglas
    • By Galoglas 8th Mar 17, 9:12 PM
    • 9Posts
    • 1Thanks
    Galoglas
    civil service pension query
    • #1
    • 8th Mar 17, 9:12 PM
    civil service pension query 8th Mar 17 at 9:12 PM
    I have 31 years accrued in my civil service pension. I have been offered a job in local government and I am trying to find out if I am best to leave my civil service pension as it is or transfer it to the local government scheme. I'll be 55 in April was planning to retire around 60.
Page 2
    • Acquinas
    • By Acquinas 10th Mar 17, 9:54 AM
    • 113 Posts
    • 76 Thanks
    Acquinas
    It is true of course that it you were to take your CS Pension now, or indeed at any time while you are still working for the LA, that it would be taxable at your marginal rate. But that situation could still be mitigated by prudent tax planning. You won't be able to recycle your retirement lump sum by paying it into a SIPP or APCs/AVCs in the LGPS etc, but would be able to with some of your salary. The lump sum would be non-taxable of course so you could get the motorhome before you reach LGPS NPA. There is of course a balancing argument for simply "sitting on it" and letting it build. I think it all comes down to personal circumstances and lifestyle choices.

    On the other hand - and this is where I think we need some input from an LGPS expert - you can access your LGPS core pension entitlement from age 55. If you request this yourself then it will be payable at a reduced rate (similar to the arrangement for the CS pension), but if it should so pass that you were made redundant at any point then the LGPS is obliged to pay out in full without actuarial reduction.. What I'm not sure about though is whether that only applies to pension built up by virtue of your own contributions via payroll or whether it would apply to transfer club entitlement too. If it did though that could be quite a powerful factor in favour of transferring in.
    • OldBeanz
    • By OldBeanz 11th Mar 17, 5:33 AM
    • 675 Posts
    • 507 Thanks
    OldBeanz
    In your position I would leave the 2 pensions separate. Retiring last year my CS pension was based on my 2007 salary and boosted my pension by 10% i.e. CS pay has lost 10% against inflation since 2007. Take your pension at 60 (it takes them 4 months so put a note in your diary to get in touch 6 months before). You then can retire at 60 and await your LGPS pension; as you have presumably a decent CS pension you could justify trying to convert the JGPS to a SIPP and drawing the funds as required; if you felt you wanted to continue working then pay your pension (or at least any money taxed at the higher rate) into a PP or SIPP until you want to retire or have enough money to take you to your SP and LGPS pension. Just take your pensions when they are due.
    • kidmugsy
    • By kidmugsy 11th Mar 17, 11:58 AM
    • 9,629 Posts
    • 6,384 Thanks
    kidmugsy
    Essentially, you have to remember that you are a long time dead.
    Originally posted by Acquinas
    Aye, but you also have to remember that age 80 is nothing nowadays.
    • kidmugsy
    • By kidmugsy 11th Mar 17, 12:03 PM
    • 9,629 Posts
    • 6,384 Thanks
    kidmugsy
    I have 31 years accrued in my civil service pension. I have been offered a job in local government and I am trying to find out if I am best to leave my civil service pension as it is or transfer it to the local government scheme. I'll be 55 in April was planning to retire around 60.
    Originally posted by Galoglas
    If you do retire at 60 that gives you the useful option of taking the CS DB pension and also, perhaps, transferring the LGPS pension to a DC scheme. Then you could draw from the DC pension to bridge the gap until your State Retirement Pension.

    if you moved the CS pension into the LGPS then you'd lose the option of diversifying your occupational pensions between DB and DC. It may be an option you'd never use, but it still might be comforting to know it's there.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

301Posts Today

2,684Users online

Martin's Twitter
  • RT @iiSteveJonesii: @MartinSLewis After watching you talk this morning about me burning £300 I got on a comparison site tonight & sure enou?

  • In or near York? This Wed the @itvmlshow Roadshow" will be at the York Food & Drink Festival - do come and say hi; St Sampsons Square 11-4.

  • It's the subtle poetry and lyricism of tweets like this that I find so endearing https://t.co/XhSKBCGyXe

  • Follow Martin