LGPS Deferred Benefits

lutzi1

I'd be grateful if anyone on here could put my mind at rest.

I worked for an English local authority for about 10 years before leaving in the year 2000. I earned quite a reasonable managerial salary in those days, but left to stay at home and look after my family. I have deferred benefits due to start paying a pension when I turn 60. It's not a fortune, just a few K a year, but will form an important part of my income in retirement, not least because it pays out at 60.

For the last four years I have been doing a little zero hours contract job for another local authority. I told them when I started that I did not wish to join the pension scheme as my current job pays very little and I did not wish it to complicate the position vis a vis my other pension. They ignored my instructions and enrolled me, and subsequent attempts to resolve this got me nowhere, so in the end I gave up.

I now have the opportunity to do a few more hours a week with a neighbouring authority as well, so the same issue will arise there.

Will these trivial pension contributions I have made (and could make in the new job) impact negatively on the deferred pension rights I accrued all those years ago? (I know the pension scheme has changed since I left). And should I make contributions in the new job as well?

I'd be grateful for any advice. Thank you.

hyubh

For the last four years I have been doing a little zero hours contract job for another local authority. I told them when I started that I did not wish to join the pension scheme as my current job pays very little

Doesn't matter - the pension earned would have outweighed the cost easily.

and I did not wish it to complicate the position vis a vis my other pension.

It wouldn't - before April this year the default situation was for each employment to be dealt with separately and only joined up with an explicit election. For new joiners since April the situation is a bit more complex, though without a change to the status of your DB.

They ignored my instructions and enrolled me

If this was after auto-enrolment (AE) started they would have had to - if you didn't want to join, you would have to opt out after the fact and get a refund. If it was before AE, in contrast, then under the LGPS's old own auto-enrolment rules you should have been able to make an opt out election beforehand.

, and subsequent attempts to resolve this got me nowhere, so in the end I gave up.

Great, so you've got a second LGPS pension now, albeit very small...

I now have the opportunity to do a few more hours a week with a neighbouring authority as well, so the same issue will arise there.

You should stay auto-enrolled unless you really, really need the pennies, especially under the CARE scheme (contribution rates are banded by actual not whole time equivalent pay like before).

Will these trivial pension contributions I have made (and could make in the new job) impact negatively on the deferred pension rights I accrued all those years ago?

No - completely separate.

(I know the pension scheme has changed since I left).

Not materially for you on this point. Since your DB is wholly in respect of pre-CARE scheme membership and the gap between your deferment starting and the new, post-April 14 job starting is more than 5 years, then by default it continues to stay completely separate. If you wanted to you could transfer it into your new CARE scheme membership to buy extra CARE pension instead, though personally I wouldn't.

And should I make contributions in the new job as well?

Yes - the CARE scheme is designed to be better for low paid workers at the expense of the highest paid.

xylophone

I assume that you will not become eligible for state pension until after 6 4 16?

If so, see https://www.gov.uk/new-state-pension/overview

lutzi1

Thank you very much for your advice, hyubh.

No, I won't be eligible until after 6/4/16, xylophone.

Thanks for your responses.

lutzi1

I've just been having a look at the LGPS CARE scheme online. Just to be absolutely clear, the date at which my earlier pension is payable hasn't changed from 60 has it ?

Thanks guys.

hyubh

lutzi1 wrote: »

Just to be absolutely clear, the date at which my earlier pension is payable hasn't changed from 60 has it ?

There is no link whatsoever between your earlier pension and either the one you are currently earning or your prospective all-CARE one.

That said, presumably it's 60 under 'rule of 85' protections, or do you just mean drawing it at 60 with reductions?

lutzi1

Thanks hyubh.

No, I should be entitled to draw the full former pension at 60 - that was the normal retirement age under the scheme, and that's what the annual statements all say. I just wanted to check it hasn't changed, and that earning further pension on a vastly reduced salary (nowadays I earn pin money) won't have mucked it up.

I really appreciate your advice, thank you.

hyubh

lutzi1 wrote: »

No, I should be entitled to draw the full former pension at 60 - that was the normal retirement age under the scheme,

Until April this year normal retirement age in the LGPS has always (i.e., since before WW2) been 65 for men and women, however historically you could potentially draw the pension from 60 without any actuarial reduction depending on length of service, and latterly, age and length of service. There was (is) also special dispensation for a group of people transferred from the civil service scheme at one point, though I'd imagine it's the 'rule of 85' that gets you your 60.