LGPS or SHPS?

Pocketsaver

Hi all,
Work, a housing association, have given me a 6 month contract in a new position. This now qualifies me to contribute toward a pension scheme for the first time which I intend on joining. I have the option of joining the LGPS or the SHPS. My question to you is, which of the two is better to contribute to? My salary is £21,223.65.
I have found the information booklets not very helpful as I do not understand the entire system, except that pensions are a good thing and that the sooner I start contributing towards it, the better. I have looked at their websites and did not find that very helpful, as again I did not understand the system.
From what I am able to gather, under LGPS I contribute at a rate of 6.5%. My employer pays the balance of the cost of providing my benefits in the LGPS, with every three years being a review to calculate how much this should be. I think I am right in understanding my annual pension will be based on 1/60th of my final year's pensionable pay.
With SHPS I was given a little booklet which I found practically worthless referencing their scheme. It provides no information on what they offer, it just discusses pensions in general and their benefits. When I look at their website I am just baffled. What makes it more confusing is it seems I have the option of a CARE (do they mean career average?) and Final Salary. Can someone explain all this and what my contributions, and benefits, would be with SHPS?

I have tried to look up the information on their websites beforehand, but to be honest I am just left thinking 'What?', 'Huh?'. :rotfl:Could someone help me find out which scheme would be the better to join? I'd like to think of the schemes in their short term (length of the contract) and long term impact.
Also, how do I find out my tax relief and NI reduction as a result of contributing towards a pension scheme besides the State Second Pension Scheme (S2P).

Not sure if it matters, but I am 23 years old.
Hopefully I haven't missed out any other important information.

xylophone

http://www.tltsolicitors.com/print.php?page_id=3453
http://www.lgps.org.uk/lge/core/page.do?pageId=100340

I don't know anybody in SHPS but I do know someone in LGPS - seems an excellent scheme. http://www.lgps.org.uk/lge/core/page.do?pageId=100340

If I were given the choice, I'd opt for LGPS - very portable if you take up work with a local authority etc.

As you are unsure, I should think you could obtain more information from the administrators of both schemes?

hyubh

Pocketsaver wrote: »

What makes it more confusing is it seems I have the option of a CARE (do they mean career average?) and Final Salary.

CARE is career average, yes. If the 6 months is unlikely to turn into 6 years (say), then it won't make much difference however, otherwise you should think in terms of how much your salary is likely to rise relative to inflation over the years.

Given the link given by xylophone, neither SHPS option looks as good as the LGPS however, notwithstanding the fact it will itself become a CARE scheme in 2014. The 'portability' xylophone speaks is also two times over - if after the 6 months you were to start another job with LGPS membership, then regardless of the employer, you have the right to transfer your old LGPS service in on a like-for-like basis (if it is between LGPS funds then a transfer calculation is performed and money exchanged, but that wouldn't be anything for you to worry about), and secondly, the LGPS is also part of the public sector 'club transfer' arrangement, which means you can easily transfer between the LGPS and (say) the civil service or teacher's schemes on preferential terms.

Pocketsaver

Thanks both. After speaking with HR and the Pension Administrator I have opted to go for LGPS.