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Help need with transfer of LGPS
fluffymovie
Posts: 1,417 Forumite
Good afternoon
I wonder if any of the experts on here could help me please?
Quick background, I work for Local Gov't and pay into my pension and have done since rejoining the scheme in 2004. Upon rejoining, I combined all previous schemes together (I have worked for 5 different Councils in different counties since 2000)
I moved jobs again in 2010 and only when I received an annual statement from my last council did I notice that my pension had not been combined as usual. It;s normally very simple and I just sign a form and it's all done.
Anyway, after a bit of hassle, I have now been given permission to combine my old and current but have now received a letter that is just jargon to me...
It says that I need to decide to transfer my benefits to the current pension fund and gives me some points to consider
1 - Retirement benefits under the LGPS are calculated using the average pensionable pay for the last year of employment, If you transfer and subsequently leave while your salary is lower the value of your benefits accrued to June 2010 would be reduced. (I am on £5 pa less here than my last place so don't think this is an issue)
2 - If you keep your benefits separate the deferred benefits will increase annually in line with inflation. Whilst these increases maintain the value of your deferred benefits, you may expect that your pensionable pay in your new employment will increase at a more rapid pace and therefore overtake the value of your new increased deferred benefits before leaving new employment
3 - Should you die in service, a death grant equal to 3 times your annual pensionable pay would be paid in respect of your current employment. There would also be a death grant payable in respect of your deferred benefits but if you link them together, the right to a deferred lump sum death grant will not exist.
From all of this, am I right in thinking that it would be better for me to retain the 2 pensions separately? I am totally at sea and would appreciate any advice?
Thanks for taking the time to read this long, long post!
I wonder if any of the experts on here could help me please?
Quick background, I work for Local Gov't and pay into my pension and have done since rejoining the scheme in 2004. Upon rejoining, I combined all previous schemes together (I have worked for 5 different Councils in different counties since 2000)
I moved jobs again in 2010 and only when I received an annual statement from my last council did I notice that my pension had not been combined as usual. It;s normally very simple and I just sign a form and it's all done.
Anyway, after a bit of hassle, I have now been given permission to combine my old and current but have now received a letter that is just jargon to me...
It says that I need to decide to transfer my benefits to the current pension fund and gives me some points to consider
1 - Retirement benefits under the LGPS are calculated using the average pensionable pay for the last year of employment, If you transfer and subsequently leave while your salary is lower the value of your benefits accrued to June 2010 would be reduced. (I am on £5 pa less here than my last place so don't think this is an issue)
2 - If you keep your benefits separate the deferred benefits will increase annually in line with inflation. Whilst these increases maintain the value of your deferred benefits, you may expect that your pensionable pay in your new employment will increase at a more rapid pace and therefore overtake the value of your new increased deferred benefits before leaving new employment
3 - Should you die in service, a death grant equal to 3 times your annual pensionable pay would be paid in respect of your current employment. There would also be a death grant payable in respect of your deferred benefits but if you link them together, the right to a deferred lump sum death grant will not exist.
From all of this, am I right in thinking that it would be better for me to retain the 2 pensions separately? I am totally at sea and would appreciate any advice?
Thanks for taking the time to read this long, long post!
I currently manage a Housing Benefit service and have been working in Housing / council tax benefit (as was) since 2001.
All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.
All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.
0
Comments
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Shameless ***bump****
Can anyone help please?I currently manage a Housing Benefit service and have been working in Housing / council tax benefit (as was) since 2001.
All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.0 -
If you think your salary prospects are greater than the deferred increases then join them up.
However if you think you will die in service leave them as they are.
In all seriousness though, I would do what's best for your retirement rather than your inheritance.0
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