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    • swindiff
    • By swindiff 19th May 17, 10:04 AM
    • 238Posts
    • 77Thanks
    swindiff
    Transfer NHS pension to LGPS?
    • #1
    • 19th May 17, 10:04 AM
    Transfer NHS pension to LGPS? 19th May 17 at 10:04 AM
    My partner has a pension with the NHS, 12 years service working part time. Full time salary upon leaving in May 2016 was 21k and she worked 2 days a week, so PT salary of around 8.4k

    She has started working full time at the beginning of this year for a University and has joined the LGPS. Full time salary currently 19.5k raising to 21.5k over the next 4 years due to salary band increments.

    She also has a small private pension with Royal London from when she contracted out of SERPS in the late 80's

    She has authorised LGPS to obtain transfer details from her existing schemes with the NHS and Royal London which we are waiting for details on, but what are peoples initial thoughts on transferring, particularly from NHS to LGPS?

    Thanks
Page 1
    • kidmugsy
    • By kidmugsy 19th May 17, 10:57 AM
    • 9,266 Posts
    • 6,081 Thanks
    kidmugsy
    • #2
    • 19th May 17, 10:57 AM
    • #2
    • 19th May 17, 10:57 AM
    LGPS has one potential advantage that stands out. She could take a CETV and transfer to a personal pension of some sort if that happened to suit her circumstances at the time. Such a transfer out from NHS to personal pension is forbidden. It's possible, however, that it might turn out to prove wiser not to do so. But at least the option would be there.

    What are the scheme retirement ages for NHS and LGPS?

    As for her Royal London pension: she would then be tying it up in a scheme with a normal retirement age that might not suit her. Some people are happy to have money split between a DB scheme and a DC scheme: they reckon that the guarantee that comes with the former gives them licence to make riskier investments with the latter.
    • Andy L
    • By Andy L 19th May 17, 11:07 AM
    • 8,232 Posts
    • 6,462 Thanks
    Andy L
    • #3
    • 19th May 17, 11:07 AM
    • #3
    • 19th May 17, 11:07 AM
    As a transfer via the "public sector transfer club" it will ignore the difference in salary and only look at the difference in benefits (eg pension age, accrual rate etc).

    Since she's taking a pay cut on moving jobs then she will loose on that deal as opposed to someone getting a pay rise who would win.

    If she leaves it where it is it will increase with inflation (CPI) if she transfers it will increase with salary. Its likely that, for the next few years public sector salaries will still be held below inflation. There's also, IIRC, a declared desire by the Tories to do away with pay progression in the wider public sector after effectively doing away with it in the civil service.
    • swindiff
    • By swindiff 19th May 17, 1:26 PM
    • 238 Posts
    • 77 Thanks
    swindiff
    • #4
    • 19th May 17, 1:26 PM
    • #4
    • 19th May 17, 1:26 PM
    Is she taking a pay cut as far as the pension in concerned as she is earning a lot more money now, working full time rather than part time?
    • Andy L
    • By Andy L 19th May 17, 5:05 PM
    • 8,232 Posts
    • 6,462 Thanks
    Andy L
    • #5
    • 19th May 17, 5:05 PM
    • #5
    • 19th May 17, 5:05 PM
    Is she taking a pay cut as far as the pension in concerned as she is earning a lot more money now, working full time rather than part time?
    Originally posted by swindiff
    DB Pension accrual is based on full time salary. You just accumulate years of service at a slower rate, eg 10 years service at 1/2 full time gives 5 years service at the full time salary for pension calculations
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