Reducing hours and LGPS implications

JohnnyJet

Is it possible and is it worth me converting my opted out SERPS contributions into the LGPS?

daveyjp

JohnnyJet wrote: »

Okay thanks.

I know of several people I work with that have chosen to work a 3 day week several years before retirement.

My confusion is based around it being called a final salary pension, if I chose to reduce my days then my pay would reduce, hence my final salary would be less and wouldn't that effect my pension?

So from what I understand this is not the case so if I chose to reduce my hours say 2 years before retirement then it would only be my future payments into the plan that would be affected and I would still get my previous contributions paid as my previous higher salary?

Flexi retirement is an option for those old enough. You take your pension, then start on a new contract on shorter hours, which accrues pension rights.

hyubh

daveyjp wrote: »

Flexi retirement is an option for those old enough.

Only if the employer consents. Whether they will be open to a flexible retirement or not will be in their LGPS discretions policy (every employer in the scheme must have such a policy).

Teaandscones

Flexible retirement can be a very good deal in the LGPS. A number of my colleagues have taken this and have found that doing a 3 day week plus pension leaves them with similar net pay as before when working a 5 day week. Whether this is granted or not is up to the employer, and employers are usually very loathe to agree this below age 60 due to pension strain costs. However, for staff in their 60's it can be a good deal for both sides as employers also get to keep expertise but have a cut in the pay bill.

hyubh

JohnnyJet wrote: »

Is it possible and is it worth me converting my opted out SERPS contributions into the LGPS?

Do you mean transfer in a private pension? The standard time limit for transfers is 12 months from the member beginning their current employment (the limit may be extended by the employer, in agreement with the administering authority, if their discretions policy says they will, however most don't).

JohnnyJet

hyubh wrote: »

Do you mean transfer in a private pension? The standard time limit for transfers is 12 months from the member beginning their current employment.

Yes I have a private pension and an old company one. Shame about the 12 months rule, they don't exactly tell you that when you sign up and I wouldn't even think to ask. Having changed jobs a few times I will now end up with 3 or 4 different small pension pots.

Is it worth adding to the LGPS through an additional contribution?

hyubh

JohnnyJet wrote: »

Shame about the 12 months rule, they don't exactly tell you that when you sign up

You should have received a scheme booklet via your employer when you joined; there is also a lot of information online, both from individual fund administrators and the LGA (for example, see the first item in the FAQ page here: http://www.lgps.org.uk/lge/core/page.do?pageId=101485).

Is it worth adding to the LGPS through an additional contribution?

Check out the APC modeller on the national LGPS 2014 site:

http://www.lgps2014.org/content/how-do-i-buy-extra-or-lost-pension