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    • NewPensionPerson
    • By NewPensionPerson 27th Aug 17, 8:59 PM
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    NewPensionPerson
    Stakeholder pension transfer into LGPS
    • #1
    • 27th Aug 17, 8:59 PM
    Stakeholder pension transfer into LGPS 27th Aug 17 at 8:59 PM
    Hi everyone,

    I have one stake holder pension from Aviva which I started in 01/08/2007 and was frozen in 01/11/2013 transfer value of this policy is 8,035.02.

    I also have another stake holder pension from Aviva which I started in 01/05/2002 which is still active and I’m paying 30 per month into this. The transfer policy value is 12,377.04.

    I’m now a low earner working 20 hours per week as an admin assistant at a school I’ve been working for four months. The pension contributions I pay are now based on my actual pensionable pay.

    From my wage slip this would appear to be 38 per month. The pension scheme is the West Yorkshire Pension Fund and I’m an active member.

    With an annual pay of less than 13,700 my contribution rate is 5.5%

    My Employer contribution quoted below:
    “Your employer pays in the balance of the cost of providing your benefits in the scheme after taking into account investment returns. Every three years, an independent actuary works out how much your employer should contribute to the scheme.
    The amount varies, but the underlying assumption at the moment is that employees contribute approximately one third of the scheme's costs and employers contribute the rest.”

    I’m certainly no expert in such pension matters, what I’d like to know is it advisable to transfer me Aviva pensions into my new LGPS Scheme.

    If you have any questions I’ll answer them the best I can.

    Kind Regards,
Page 1
    • Silvertabby
    • By Silvertabby 27th Aug 17, 9:03 PM
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    Silvertabby
    • #2
    • 27th Aug 17, 9:03 PM
    • #2
    • 27th Aug 17, 9:03 PM
    You can ask to see some figures before you decide.

    Don't leave it too long - transfers in have to be done in your first 12 months of LGPS membership.
    • NewPensionPerson
    • By NewPensionPerson 28th Aug 17, 10:03 PM
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    NewPensionPerson
    • #3
    • 28th Aug 17, 10:03 PM
    • #3
    • 28th Aug 17, 10:03 PM
    Thank you for your reply, what figure's would you suggest I ask for.
    • bigadaj
    • By bigadaj 28th Aug 17, 10:37 PM
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    bigadaj
    • #4
    • 28th Aug 17, 10:37 PM
    • #4
    • 28th Aug 17, 10:37 PM
    Thank you for your reply, what figure's would you suggest I ask for.
    Originally posted by NewPensionPerson
    How much pension your transfer in will buy you and the terms for access, ie state pension age, scheme retirement age etc
    • mark5
    • By mark5 28th Aug 17, 10:42 PM
    • 1,200 Posts
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    mark5
    • #5
    • 28th Aug 17, 10:42 PM
    • #5
    • 28th Aug 17, 10:42 PM
    Is the LGPS pension linked to state pension age?

    If it was me I would be inclined to keep the aviva pots under my own control as you will probably have access to them without penalty at a younger age.

    That's from a right to access the money as opposed to what might be the best financial situation.
    • hyubh
    • By hyubh 29th Aug 17, 12:07 AM
    • 1,950 Posts
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    hyubh
    • #6
    • 29th Aug 17, 12:07 AM
    • #6
    • 29th Aug 17, 12:07 AM
    How much pension your transfer in will buy you and the terms for access, ie state pension age, scheme retirement age etc
    Originally posted by bigadaj
    The transfer would buy extra 'CARE' pension (though not actually salary-related). Scheme normal retirement age = the member's state pension age.

    Im certainly no expert in such pension matters, what Id like to know is it advisable to transfer me Aviva pensions into my new LGPS Scheme.
    Originally posted by NewPensionPerson
    Just kick off the transfer process to get a quote of how much LGPS pension the DC ones would buy. You'd need to do this if you decided to pursue a transfer anyway.

    Doing a quick search of WMPF's website, I can't see transfer in forms there - might be behind the member portal (presumably you've registered?), otherwise drop them a call or send an email and ask for them (don't bother with your employer, they probably won't have the foggiest).
    • NewPensionPerson
    • By NewPensionPerson 29th Aug 17, 8:59 AM
    • 5 Posts
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    NewPensionPerson
    • #7
    • 29th Aug 17, 8:59 AM
    • #7
    • 29th Aug 17, 8:59 AM
    Thank you for your replies everyone, I've now received my Transfer request form from the WYPF. Which I'll fill in and send to Aviva. I'll outlay a few key points from the form below, to see if you think they sound OK.

    "Dear pension provider i.e Aviva,

    I am thinking of transfering my pension rights with you to the local government pension scheme. Please send me the information that is asked here below.

    Transfer value ( TV)

    Limited Revaluation Premium in addition to TV

    AVC fund in addition to the TV

    The date the TV is guaranteed to
    Guaranteed Minimum Pension at the date this person left the scheme (pre 06.04.88)(post 05.04.88)

    Could the member take a refund of their contributions. If yes then Gross refundable contributions or Relevant contracted out earnings."

    "Hope my additional above information sounds OK"
    • dunstonh
    • By dunstonh 29th Aug 17, 9:07 AM
    • 89,603 Posts
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    dunstonh
    • #8
    • 29th Aug 17, 9:07 AM
    • #8
    • 29th Aug 17, 9:07 AM
    Hope my additional above information sounds OK"
    Most of the things you have asked for do not apply to stakeholder pensions. The questions seem to be those that would be asked for defined benefit schemes. A stakeholder is a defined contribution scheme.

    You dont send the Transfer request form to Aviva. You are not transferring TO Aviva. They do not complete third party transfer forms (like virtually all providers). You ask Aviva for transfer discharge forms. When you have those, you sign them and send them to the other scheme.

    The receiving scheme will send the discharge forms to Aviva along with a selection of information that Aviva needs. Aviva will supply the scheme with the information they need and complete the transfer.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Silvertabby
    • By Silvertabby 29th Aug 17, 10:07 AM
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    Silvertabby
    • #9
    • 29th Aug 17, 10:07 AM
    • #9
    • 29th Aug 17, 10:07 AM
    It's LGPS procedure for the member to send the letter/form described by OP to their previous pensions provider. Aviva will then send a letter/discharge forms to the OP giving all relevant information - ie, type of fund, transfer value - but ignoring the questions which don't apply.

    OP then sends this letter to the LGPS, who will then tell him how much CARE pension in the the LGPS it will buy him.

    Note: The purchase quote will assume pensionable service to NRA. OP can take his benefits - LGPS and amount purchased from the transfer in - from age 55 onwards, but they would be reduced for early payment.
    • xylophone
    • By xylophone 29th Aug 17, 11:27 AM
    • 23,464 Posts
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    xylophone
    https://www.lgpsmember.org/more/tvin-nonLGPS.php

    The OP has a couple of stakeholder pensions.

    Apart from the Transfer Value of the pensions, none of the questions apply in the OP's case.

    If the OP anticipates wanting to access pension benefits before Scheme Retirement Age, he might be better off considering combining the stakeholder pensions and continuing to make his modest monthly contribution to give him this flexibility.
    • NewPensionPerson
    • By NewPensionPerson 7th Sep 17, 11:19 AM
    • 5 Posts
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    NewPensionPerson
    It's been 8 working days since I posted my request form for Transfer Values of my Aviva pensions. Still no reply as yet..!
    • xylophone
    • By xylophone 7th Sep 17, 11:28 AM
    • 23,464 Posts
    • 13,640 Thanks
    xylophone
    It's been 8 working days since I posted my request form for Transfer Values of my Aviva pensions. Still no reply as yet..!
    http://forums.moneysavingexpert.com/showthread.php?t=5706285

    Aviva has never been known for having a good quality telephone service and it does take 7-10 days answering paper requests. However, accessing money is one of its strong points.
    • NewPensionPerson
    • By NewPensionPerson 21st Sep 17, 1:40 PM
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    NewPensionPerson
    I’ve now received my transfer value for one of my stake holder pensions and have sent the information onto my LGPS scheme, who have also now sent me a reply back. I’ve just outlined a few key points below to see if I’m making any sense.

    Information below regarding my active Aviva stake holder’s pension

    Regular Contribution Payment type Amount () 30.77 Tax relief () 7.69 Total () 38.46 / 461.52 per month

    Plan start date
    1 May 2002
    Chosen pension age
    65

    The statement shows what your plan is worth now, the payments into your plan and how much it
    Could be worth when you retire.

    Your plan summary from 1 May 2016 to 30 April 2017
    Plan values calculated on 30 April 2017
    Total fund value 11734.50
    Transfer value 11734.50
    Last year's transfer value 10418.43

    From your statement dated 1 May 2016
    Plan payments for 1 May 2016 to 30 April 2017
    Payments into your plan 461.52

    What you might get back
    At age 65 we think this fund could be worth 23200

    Your plan value
    Value of your fund

    This gives you a breakdown of your fund value including final bonus. Please remember the values
    Can go down as well as up and aren't guaranteed.
    Final Bonus 2424.51
    Value of your fund on 30 April 2017 11734.50
    The transfer value of your fund on 30 April 2017 is 11,734.50.
    If our investments grow each year at: 3.90%
    Your fund could be worth: 43000
    But allowing for inflation each year of: 2.50%
    Your fund in today's prices could be: 23200
    If the cost of buying the income when you retire is based on an interest
    Rate of: -2.20% your starting income in today's prices could be: 49 a month

    “With the above information I sent to my new works pension provider the (West Yorkshire Pension Fund), to see what the transfer value would be within a Lincolnshire Pension Fund.
    This was the letter I reived back from the WYPF.

    “Transfer of pension rights from Aviva.
    Transfer Credit:
    The transfer value would buy an amount of additional pension in The Local Government Pension Scheme (LPGS). This pension would be added to your LPF pension account and would increase every April in line with the cost of living. It would be in addition to the pension you have built up in the LGPS.
    Estimated value 1368.92

    “So to summarize could anyone recommend transferring my Aviva pension into my new works pension.”
    • Silvertabby
    • By Silvertabby 21st Sep 17, 2:03 PM
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    Silvertabby
    Aviva are saying that if you stop paying into your stakeholder, then your fund could be worth 23,200 at age 65. It could be more, it could be less.

    The LGPS, however, are saying that in return for your current fund of 11,734.50 they will pay you an index linked pension of 1368.92 from State pension age. (The LGPS letter says 'estimated' just in case the transfer value and/or the transfer factors change before the transfer can be finalised).

    Assuming that you live for the average 20 years after retirement, the LGPS will pay you 20 x 1368.92 = 27,378.84 plus inflationary increases (both before and after retirement).

    No-one one these boards can offer actual advice, so the final decision is up to you.

    All I can say is that the LGPS transfer factors are really rather generous. Before I retired as a LGPS administrator last year, my colleagues and I were having bets on how long it would take the powers-that-be to realise that the factors were too generous and rein them back.
    Last edited by Silvertabby; 21-09-2017 at 3:59 PM.
    • WillowCat
    • By WillowCat 21st Sep 17, 2:40 PM
    • 704 Posts
    • 822 Thanks
    WillowCat
    That's stonkingly good value. Now seriously considering trying to get a local government job just so I can transfer some of my pension!
    • AlanP
    • By AlanP 22nd Sep 17, 2:00 PM
    • 962 Posts
    • 680 Thanks
    AlanP
    That's stonkingly good value. Now seriously considering trying to get a local government job just so I can transfer some of my pension!
    Originally posted by WillowCat
    There are loads of vacancies - come and join us.

    Mind you MrMuscle and a few other posters on here will never talk to you again as you would be "sponging off them".
    • bigadaj
    • By bigadaj 22nd Sep 17, 3:03 PM
    • 10,725 Posts
    • 7,012 Thanks
    bigadaj
    There are loads of vacancies - come and join us.

    Mind you MrMuscle and a few other posters on here will never talk to you again as you would be "sponging off them".
    Originally posted by AlanP
    ....and in shock news we've found out that one of the bigger culprits has been Mrs muscle, who'd have thunk it?
    • JoeCrystal
    • By JoeCrystal 22nd Sep 17, 5:20 PM
    • 1,292 Posts
    • 755 Thanks
    JoeCrystal
    That's stonkingly good value. Now seriously considering trying to get a local government job just so I can transfer some of my pension!
    Originally posted by WillowCat
    Apparently, a new starter need to pay into LGPS for at least two years to keep it deferred if leaving the job. However, as far as I am aware, you can transfer the pension pot in and once it is all settled, you can leave right away making it deferred without needing two years. Again, I am not sure I got that right.
    • Silvertabby
    • By Silvertabby 22nd Sep 17, 6:27 PM
    • 1,807 Posts
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    Silvertabby
    Joe - you are right.

    However, it takes up to 3 months for a pension record to be set up with the LGPS, as anyone who opts out within the first 3 months of service has their contributions refunded by their employer.

    It could then take a further 3 months to finalise the transfer.
    Last edited by Silvertabby; 22-09-2017 at 6:30 PM.
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