We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Transfering private pension to Local Government fund ???
Options

ABN
Posts: 293 Forumite


I am thinking of applying for a part time technician position at a local school. The hrs would be 17.5 per week with a salary of approx £7,000. The application pack states that I will be eligible to join the local government pension scheme.
Whether I apply or not will depend on whether I can transfer my private pension fund and what it would bring.
The private fund currently stands at approx £112,000.
So
a) Would I be able to transfer that amount?
b) Approx what pension would that buy?
c) If I can transfer it, when would I be able to i.e. how long after starting?
d) I’m 55. How long would I need to stay employed with them before leaving and being able to draw the pension?
Any advice/information would be appreciated. Thanks
Whether I apply or not will depend on whether I can transfer my private pension fund and what it would bring.
The private fund currently stands at approx £112,000.
So
a) Would I be able to transfer that amount?
b) Approx what pension would that buy?
c) If I can transfer it, when would I be able to i.e. how long after starting?
d) I’m 55. How long would I need to stay employed with them before leaving and being able to draw the pension?
Any advice/information would be appreciated. Thanks

0
Comments
-
Whether I apply or not will depend on whether I can transfer my private pension fund and what it would bring.
That is not a good reason not to join.
The LGPS is one of the best around. Not joining would be throwing away thousands of pounds a year in lost income later in your life which would have cost you nothing.a) Would I be able to transfer that amount?
Possibly. Possibly not. Does it contain protected rights or GMP?b) Approx what pension would that buy?
You will need to ask the LGPS scheme what they will give you for it.c) If I can transfer it, when would I be able to i.e. how long after starting?
I believe you can only do it in the first 12 months now. Although that may not apply to the LGPS but one of the other Govt backed schemes. Again, you should ask them this question.d) I’m 55. How long would I need to stay employed with them before leaving and being able to draw the pension?
Possibly 60, may 65 depending on whether you are blue collar or white collar or you job has an exception.
They have a scheme booklet available which is very useful and will answer all your questions. I suggest you ask them for it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for the reply but a slight missunderstanding. It's whether to apply for the job or not that is in question. If I can't transfer the private pension fund, maybe to large compared to the salary etc, then its not worth while applying for the JOB in the first place0
-
why do you need to transfer it?
The LGPS pension scheme is worth around 15% of the salary. That is how you should be comparing it. Not whether you can move a money purchase scheme in or not.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
You can take your LGP any time from 60 (with reductions), 65 without reductions.
It's one of the best schemes around, as dunstonh says.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
Oki Doki.
I fully understand that the LGP is the best to have, thats why I want it
So lets try again
I am currently not in work and living off of savings interest
I don't really want a job but the likely pension from the private pension fund when I need to take it won't be a lot.
So what I would like to do is
a) get the part time job at the school
b) transfer the private pension fund to the local government scheme
c) quit the job and get a much better pension.
Thus the question remains.
IF I do get the job will I be able to transfer the £120,000 into the LGP, remembering that the salary will be only £7000
What is likely to be the yearly pension bearing in mind that I will be in that scheme for the shortest possible time.
How long do I need to stay with the school, idealy join pension scheme on starting, leave the following day with full pension
Hope that make the question a little clearer.0 -
Ah I see, you want to try and maximise your pension!
I would contact the LGPS and ask them if you can do this.
I don't know how much you may get, but here are some figures. I have just under ten years in LGPS (no other pension apart from State) and will receive in 2014 (based on todays figures) a lump sum of £5.5k and a yearly pension of about £2200. This is index linked and if I die before my husband he will get half.
I did transfer some AVCs into it which gave me anither 1.5 years; this was only used to calculate my pension, not my lump sum.
Hope this helps.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
As your pension would be salary related the £120,000 may be too much to fund a part time salary. Further to this you may start the job and not like it and as a consequence leave and move to another employer.
I would leave the transfer alone until you have decided to stay in the job. You will have up to one year to join the scheme and transfer benefits in.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
I don't understand why transferring the pension is important to you. Even if you don't transfer, your pension will get a boost from the increased income, and the contributions made by the employer to the new scheme.0
-
Oki Doki.
I fully understand that the LGP is the best to have, thats why I want it
So lets try again
I am currently not in work and living off of savings interest
I don't really want a job but the likely pension from the private pension fund when I need to take it won't be a lot.
So what I would like to do is
a) get the part time job at the school
b) transfer the private pension fund to the local government scheme
c) quit the job and get a much better pension.
If you quit the job the LGPS pension will be frozen & only increase with rpi. Since your transfer in will have been calculated on a fair(ish) basis you won't get anymore pension than leaving you private pension where it is. You will however avoid the investment risk of the private pension.
The only way you can win with this scheme is if you stay in the LGPS & have such a stellar career that your salary increases more quickly than they expected when calculating the transfer in0 -
I'm with pamaris. I don't follow why it is important. The availability of the LGPS is a significant benefit in itself and its quite probable that there will be little difference in the amount the personal pensions would pay compared to transferring it into the occupational pension. Indeed, it could be worse as you may not need a spouse option (we dont know your details) but the occ scheme would have that costed in.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards