Public Sector Pension Transfer Query

jem16

propercopper wrote: »

What are the factors I need to consider when I get the transfer values from my old schemes?

Number of years in old scheme vs number of years in new scheme, retiral age in both schemes, equivalent benefits for dependants. There may be others but that's what I can think of immediately.

Is it safer just to preserve the benefits accrued in the other two schemes just in case there is some change to the LGPS which would somehow lower my transferred in value?

I would think one of the main differences is the retiral age - age 60 in your old schemes and 65 in the LGPS. If you would prefer to retire earlier then it may be wise to leave them and take the benefits at age 60, then take your LGPS at age 65.

The Hutton report will affect all three schemes in some way or other as they are all public pensions. Who knows what way exactly though.

hugheskevi

Consider also how pension commencement lump sums are calculated too.

From memory (ie check all this), LGPS allows you to commute income into lump sum at the rate of 12 to 1 (not great) but also allows AVCs to be commuted across the scheme, ie, you can commute more than 25% of an AVC pot into a pension commencement lump sum if you do not commute any of the final salary pension income, whereas the other pensions are likely to have automatic lump sum payments.

Note that the Government response to Hutton's interim report was to suggest that pension contributions increased by an average of 3 percentage points, along with a suggestion that increases be tiered by income. As a higher earner, it is therefore very likely your pension contributions will increase by more than 3 percentage points.

Edit: You might also want to check whether you have protected rights to retire at age 50 with a reduced pension in the existing schemes, and what the position would be in the LGPS.