LGPS - problems with getting final figure

jem16

cattermole wrote: »

Rather than start another thread.

Can someone possibly explain please how it works if you decide to sacrifice some of your annual pension into a larger lump sum.

The commutation rate is 12:1 which is dire. Are you sure you want to do that?

How do you do the calculation to work out how much more you could get as a lump sum verses loss in annual income from the pension.

Many thanks.

With pre 2008, as far as I'm aware it will be 16 times pension plus automatic lump sum. This will be your total "pot". Then take 25% of that to give you your maximum lump sum.

http://www.lgps.org.uk/lge/core/page.do?pageId=102206

hyubh

cattermole wrote: »

How do you do the calculation to work out how much more you could get as a lump sum verses loss in annual income from the pension.

For every £1 of annual pension you give up, £12 extra lump sum. Depending on the system used, the administrator's online system might calculate the maximum possible lump sum for you.

cattermole

jem16 wrote: »

The commutation rate is 12:1 which is dire. Are you sure you want to do that?



With pre 2008, as far as I'm aware it will be 16 times pension plus automatic lump sum. This will be your total "pot". Then take 25% of that to give you your maximum lump sum.

http://www.lgps.org.uk/lge/core/page.do?pageId=102206

Thanks for the advice and to hyubh.

The weighing up of sacrificing depends entirely what you are sacrificing for i.e. if you loose 800 a year (which in real terms allowing for tax is less) to pay off a debt that over a long period would cost 5 times as much in interest then yes I think it is worth it.

Presumably the salary sacrifice for the post 2008 scheme is the same in terms of calculations you gain £12 for every £1 sacrificed or is it a higher ratio?

Sorry another question. Under the new scheme 2014 how do we calculate pension if the salary was £19500 for 22.5 hours? For say 6 years?

jem16

cattermole wrote: »

Presumably the salary sacrifice for the post 2008 scheme is the same in terms of calculations you gain £12 for every £1 sacrificed or is it a higher ratio?

Exactly the same.

Sorry another question. Under the new scheme 2014 how do we calculate pension if the salary was £19500 for 22.5 hours? For say 6 years?

I'm not sure I understand the reason for this question? Your husband should not be affected in any way by the new scheme so calculations should be based on the current scheme.

http://lgps2014.org/content/government-said-there-would-be-10-years-protection-those-nearing-retirement-i%E2%80%99m-within-10

cattermole

He will be rejoining the scheme under the new rules as mentioned or asked about in post 6. So we need an idea of what 2nd pension is likely to be for longer term planning. Thanks.

cattermole

Managed to figure it out from the 2014 link

Here where there is a modeller.

http://lgps2014.org/content/pension-accounts-2

jem16

cattermole wrote: »

He will be rejoining the scheme under the new rules as mentioned or asked about in post 6. So we need an idea of what 2nd pension is likely to be for longer term planning. Thanks.

Ah sorry - I had forgotten about that.