Transferring INTO LGPS

purch

My wife is 45 and has a part time job with our County Council ( earning about 4500 pa on a Salary Rate of 8900 )

She has been in the LGPS since October 06.

We have investigated a transfer of her current Stakeholder Pension into the LGPS, it is worth about 15,700.00 ( about 50/50 contributions and protected rights ) and the scheme has quoted that amount buying 10 years 130 days of service.....ultimately leading to an annual pension of 1,162 and lump sum of 3,500 ( based on her current salary rate )

Now, to me it sounds like a no brainer to transfer her Stakeholder into the LGPS....it would have to do pretty well investment wise to provide a pension of tht size.

.....have I overlooked any pitfalls in doing this ??

My wife has recently applied for a better paid position which isn't likely to take effect until September or October ( if she get's it ) so I think we should get this transfer done now in order to get those 10+ years of service 'locked in' as I assume on a higher salary she would get less credit for the transfer value ???

Any thoughts would be welcome.

Thanks

dunstonh

did they know there is protected rights in the pension value you quoted? Most final salary schemes wont take protected rights only ordinary rights.

Are you likely to use phased retirement? If so, then having an external pension could be more valuable as you can phase that in stages which may not be possible with the works pension.

Andy_L

The stakeholder can be taken at 55, the LGPS at 65. That's about the only downside I can see

purch

Yes they know that the Transfer value contains protected rights....

I like the thought of the flexibility of having more control over the pension pot if we keep it outside of the LGPS......but the overall ££ benefits of the scheme seem too good to miss.