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
    • FredTheFifth
    • By FredTheFifth 8th Jun 17, 8:39 PM
    • 35Posts
    • 0Thanks
    FredTheFifth
    Salary Reduction - Effect on LGPS Pension Salary?
    • #1
    • 8th Jun 17, 8:39 PM
    Salary Reduction - Effect on LGPS Pension Salary? 8th Jun 17 at 8:39 PM
    My pension salary is made up of three calculations based on 60th's and 80th's of a projected final salary and a CARE element. If my job gets made redundant but I am offered another job on a lower salary I can see that the CARE element would reduce in my projected normal retirement age salary, but can anyone advise what happens to the salary based on the 60th's and 80th's please? Ie is the originalprojected higher salary "locked in" to that calculation or does it change to the reduced salary of the job I move to?
Page 1
    • Kynthia
    • By Kynthia 8th Jun 17, 9:02 PM
    • 4,942 Posts
    • 6,920 Thanks
    Kynthia
    • #2
    • 8th Jun 17, 9:02 PM
    • #2
    • 8th Jun 17, 9:02 PM
    I dont know the lgps but in a similar scheme it would mean the final salary in all your calculations would be lower. If you had breaks in service and the pension from the previous service hadn't been linked to your current service so it has a final salary already locked in, then that might not be the case but you would probably know that already if it applied to you.

    There is possibly some protection due to being downgraded as part of a redundancy process, rather than taking a lower paid job through choice. Can you asked your pension administrator?
    Don't listen to me, I'm no expert!
    • GunJack
    • By GunJack 9th Jun 17, 7:35 AM
    • 9,643 Posts
    • 7,199 Thanks
    GunJack
    • #3
    • 9th Jun 17, 7:35 AM
    • #3
    • 9th Jun 17, 7:35 AM
    Calling Silvertabby
    ......Gettin' There, Wherever There is......
    • Silvertabby
    • By Silvertabby 9th Jun 17, 8:24 AM
    • 1,395 Posts
    • 1,636 Thanks
    Silvertabby
    • #4
    • 9th Jun 17, 8:24 AM
    • #4
    • 9th Jun 17, 8:24 AM
    It depends. If you are within 10 years of your normal retirement age (State pension age) when your salary drops, then your records will probably be 'run on'.

    Your CARE element will indeed be lower, as a result of your lower pay, but your pre 2014 final salary elements will be calculated either using your salary as at your eventual date of leaving, or your best year's pay. This is either the best of your last 3 years, or the best average 3 year period over 13 years.

    If you have more than 10 years to go then you may find that your pension records up to the date of the pay drop will be preserved, and you will have a separate record for your new CARE only element.

    However, I would check how your LGPS provider will play this as part of your redundancy planning - different schemes can and do have different policies
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

2,787Posts Today

6,683Users online

Martin's Twitter