LGPS vs Teaches pension

9werty

I have recently taken up a teaching post and moved on to the teachers pension scheme. My previous 7 years of contributions have been to the LGPS. I now have the option to transfer my LGPS pension contributions to the Teachers Pension.

I am a little concerned because new members of the scheme after the first of January don't get the same deal as members before then and the LGPS scheme has also undergone changes since I joined. I am a real beginner to considering the pros and cons and can't say whether it is better or worse (I assume it is worse) but as my LGPS pension predates the first of January and the recent changes to the LGPS my question is would I be better leaving it where it is or transferring it to the TPS?

dunstonh

Which option gives you the most money and benefits?

That is what it comes down to at the end of the day. You just get the figures and analyse them.

Andy_L

Since you have left Local Government you wont satisfy the rule of 85 http://www.lgps.org.uk/glossary/rule-of-85.html
and so both schemes have a normal retiremnt age of 65

As they are both menbers of the Public Sector Transfer Club you will get a fair transfer value so by not transfering it the LGPS pension will only increase buy RPI rather than salary increases. Assuming you haven't taken a pay cut for the new job I'm hard pushed to think of any reasons to not transfer

guardianangel

I suggest you get in touch with LGPS and TSP and see what your pension is worth if you transfer it. LGPS should be able to work out exactly what your pension is worth if you decide to transfer.

Although the regs have changes for TPS, I think if you transferred it would be worth more. I would say TPS is better than LGPS anyday.

Also if you decide to transfer, you have a year from the date you started as you joined to start the transfer. Otherwise I think TPS has the right to refuse transfer. If you decide to transfer it you will need to complete the Transfer Form. You can get this either from the TPS site or from your HR department.

If you decide to transfer, make sure you keep an eye on LGPS, they are reallt really really slow at doing things and make sure you keep at it even if they do annoy you.

Techno

Can you still retire at 60 without actuarial adjustment with the TPS? I know the LGPS has gone up to 65 - that may make a difference

guardianangel

You can retire earlier than their pension age, the only thing is that your pension will be reduced accordingly. Again, you can read up on this on their website.

Techno

Yes you can retire early from any scheme and have your pension actuarially reduced accordingly but I am fairly certain that the TPS pension scheme retirement age is 60 but the LGPS is 65

Andy_L

The're both 65 for new entrants (as is the civil service, although to confuse the issue further that's now career average rather than final salary)

eira

Because of redundancy I am in the potential situation of moving from TP to LG scheme. I was told that the main difference for me would be the proportion of pension paid. TP is 1/80 final salary LG is 1/60 (I think this comes in next year). The LG office was very helpful-in my case if I took a LG job it would be 1/60 of a smaller salary, rather than the 1/80 of a teacher's salary

Andy_L

With the 1/80ths schemes you also get a 3x lump sum whic is generally taken to make them equivilant. The TPS is now a 1/60ths scheme for new entrants as well.
But yes, if you take a salary drop it's a tricky calculation to decide which is best.

ej46

My situation is similar. I have been a member of the Teachers pension scheme for 23 years. I am now eligible to join the local government scheme with transferred like for like contributions. I am not sure whether to stay in TPS or go to LGPS? Does anyone have any advice re pros and cons?