Should I transfer into the local government pension scheme

ga3996

I am 50 and have just started working for the local county council. The council are members of the local governement pension scheme (a final salary scheme) and I currently pay 6.5% of my salary into the scheme and the county coucnil also pay into the scheme. My question is I have had a private pension running for 18 years and it would buy me just over 14 years of service in the LGPS if I were to transfer it - so should I transfer or should I just continue to pay into both schemes. Has any one else had a similar situation, if so I would be interested in hearing what you decided to do? I look forward to hearing from you all.

Tighthead

I had a similar situation in that I had a money purchase pension with a former employer, and joined a company with a final salary pension. I chose to transfer the pension because I liked the security that the added years that I bought were guaranteed, and index-linked for life i.e. not subject to fund performance or annuity rates. That was my personal decision, however I did get a quote from both pension providers to see what the benefits would be if I stayed put or transferred. In my case there was little between them (although money purchase illustrations are only a vague guess at best anyway) so that, and my attitude to risk, made it an easy decision.

There are other factors to consider concerning the comparison between the scheme rules, fund charges, penalties for transferring etc, so you would be well advised to speak to an IFA that specialises in pension transfers I think.

seven-day-weekend

Agree with Tighthead. I bought a couple of extra years into the LGPS with my (small) AVC fund for similar reasons as Tighthead has quoted.

EdInvestor

Transferring to the LGPS may be a safer option, but you could lose flexibility over early retirement ( from 55 with your PP, LGPS is now 65 IIRC, check what penalties might apply if you transferred in and then wanted to retire early later on). It's also worth checking tax free cash rules.