To transfer or not to transfer...

On-the-turn_2

I paid into a teacher's pension scheme for 5 years and then (with a 3 month break) began a new job with a new local government pension scheme. This was 5 years ago.

It is likely that in the future I will leave public sector and need to join a private pension and not impossible that I may return to teaching.

Should I transfer my teaching pension into my current local government pension scheme?

Andy_L

Unfortunately you have missed the boat to transfer in to the LGPS, transfers have to be done within 12 months of joining

Andy

On-the-turn_2

Thanks Andy L

I guess that sorts that then. I assume my very small pension sits there until I am ready to claim? So I know for next time- should I have transfered when I had the chance?

Andy_L

It's one of those "it depends" questions.
Your teachers pension will sit there & give you 5/80ths of your salary when you left teaching, although that will be increased by the RPI each year. If you'd transfered it to the LGPS it would increase with your salary (generaly higher than RPI).
It's then a matter of whether the cost of transfering is less than the benefit of increasing with salary than RPI.

matto

I don't think there's any cost for transferring between most public sector pension schemes. They operate a "Pension Club".

dunstonh

matto wrote:

I don't think there's any cost for transferring between most public sector pension schemes. They operate a "Pension Club".

I dont think they operate on a cost to make a profit but with the number of differences between the schemes now, you can find the number of years service offered with one "version" will differ with another. ie. moving from a 80ths with a 65 retirement date may result in different terms offered to one with a 55 retirement date or one that operates on a 60ths basis.