Transfering private pension to Local Government fund ???

ABN

Thanks for all the replies

pamaris wrote: »

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.

I will try to explain again.
I don’t really need to work anymore. Can live quite happily on the savings, the private pension when I need to take it and of course eventually the state pension.

If however by taking a job for a short time and transferring the pension fund to a LGP would have given me a substantial increase in that pension then it would have been worth while. The LGP on its own from such a low paid job for so few years would not give any real significant benefit.

From reading the replies it would seem unlikely that transferring would bring any real benefit. I’m not really surprised about but was worth thinking about.

ABN

sorry board slow and got a double post

ABN

sorry board VERY slow and got a triple post

EdInvestor

ABN wrote: »

If however by taking a job for a short time and transferring the pension fund to a LGP would have given me a substantial increase in that pension then it would have been worth while.

The main value of the govt schemes like the LGP is not so much the size of the benefits as their security: the employer takes the risk, not you and the guarantee is pretty golden as it's the government providing it..There may also be additional valuable bells and whistles ( spouse's pensions, indexation).On the other hand, you lose flexibility on when you can get your hands on the money.

If you want to maximise income from a money purchase pension scheme you might be better to look into learning some investment skills.The availability of SIPPs offering access to quality investment options has greatly improved opportunities to grow your fund value over the old insurance company bog standard offerings, for those who can be bothered to make a bit of effort.

Another way such effort is rewarded is the option of putting the pension into income drawdown within the SIPP and taking 120% of the annuity rate as income.

Definitely worth some study, especially for thoise who have plenty of spare time

johnburman

Hi

Can i answer this one - it depends on your LGPS administering authority. Most will let you, some, as it is a discretion, will not. They should publish their policy on this, but most do not do this.

It is a transfer under LGPS Reguulation 121 you want.

and yes it is VERY MUCH worth looking into as your pension is paid out indexed linked to RPI, and that is worth a lot of money.

I have done it!

ABN

Many thanks for that info. Will look into the LGPS Reguulation 121

johnburman

And remember to buy some extra years. This is all being lost from March 2008- don't delay in applying for this .

This is a valuable option that is weird in its operation (only applies from your next birthday!) is GOING, so aply now.

johnburman

Don't go to0 IFAs about the LGPS. Why? Simple. They only get paid if you buy a policy or fund. Here u are not buying anything, just putting more money into a defined benefit pension - there is no money in it for them!

Only go to a fee based advuisor. they will tell u to buy years or transfer anyway in my experience! If not ask why (and ALWAYS get it in writing).

dunstonh

An IFA that looks after the family or where you have an ongoing business relationship would be unlikely to charge for advice on something like that. If you approach one out of the blue though, you are likely to be charged.