Disputed pension contributions

craobhan

jem16 wrote: »

How much of a difference to your pension do you expect the 4 months to make?

Using the illustration by zygurat789 it would be a tenner a month in my hand at current pay rates and about £530 on to the lump sum.

jem16

craobhan wrote: »

Using the illustration by zygurat789 it would be a tenner a month in my hand at current pay rates and about £530 on to the lump sum.

Yes I was looking at those figures and can't follow them.

The LGPS was an 1/80ths scheme prior to 2008 so most of your service is calculated on that. 1/80ths of £10,000 would be £125pa of pension. That would be £41.66pa for 4 months or £3.47pm.

If you're retiring early there will also be an actuarial reduction. How many years early are you retiring?

craobhan

I'm just turned 55 and they are giving me 2 yrs 214 days bonus on the pension. Leaving date 27.9.2013

jem16

craobhan wrote: »

I'm just turned 55 and they are giving me 2 yrs 214 days bonus on the pension. Leaving date 27.9.2013

So no actuarial reduction?

Have you worked out the 4 months based on your actual final salary?

craobhan

Thanks for the PMs jem

hyubh

jem16 wrote: »

So no actuarial reduction?

If age 55 then it's a voluntary redundancy, in which case drawing the pension early is (effectively) compulsory and the employer pays a 'strain charge' to the pension fund which negates the needs for an actuarial reduction.

Separately, it sounds as if the employer is also paying a further amount to the fund in order to bump up the membership credit ('they are giving me 2 yrs 214 days bonus on the pension'). I think the OP should thank their lucky stars quite frankly.

hyubh

craobhan wrote: »

the council moved from regionalisation to unitary authority and changed its name.

So they were a county council before...? I ask because the LGPS is organised as things were after the mid-70s local government reorganisation: any subsequent changes haven't led to the funds being broken up as various borough and district councils have become unitary authorities. As such, 'Pensions' and 'HR' need not be part of the same organisation, but it's not clear to me whether that is or isn't the case for you.

jem16

hyubh wrote: »

Separately, it sounds as if the employer is also paying a further amount to the fund in order to bump up the membership credit ('they are giving me 2 yrs 214 days bonus on the pension'). I think the OP should thank their lucky stars quite frankly.

I agree. With this enhancement I wouldn't be going down the road of trying to get 4 missing months. The council could well remove some of the enhancement.

hyubh wrote: »

So they were a county council before...? I ask because the LGPS is organised as things were after the mid-70s local government reorganisation: any subsequent changes haven't led to the funds being broken up as various borough and district councils have become unitary authorities. As such, 'Pensions' and 'HR' need not be part of the same organisation, but it's not clear to me whether that is or isn't the case for you.

Pretty much the case throughout Scotland. Strathclyde Regional Council split up to become Glasgow City Council, South Lanarkshire Council etc. However the pension fund for LGPS stayed as the Strathclyde Pension Fund.