Transfer to LGPS?

Searcher2

kidmugsy wrote: »

It's a pity they don't employ someone who can write clear, unambiguous English.

I am not sure if you are being sarcastic. I thought it was clear but then it goes on to say "the figures quoted are estimated figures only and are not a guarantee of the benefits that would become payable". My deferred pension doesn't tell me what the exact payment (to the penny) will be when I retire... just a current value.

Searcher2

hyubh wrote: »

Although, that makes the key figure for determining the CETV the 10K pa in current money from age 62. If this were an old LGPS FS pension I wouldn't expect a CETV of 280K for that, especially as you're still in your forties (transfer values go up the nearer to retirement). If that's what the old scheme will pay though, I'd be inclined to get the transfer done before they change their mind. The extra LGPS pension bought will more than offset the early retirement reduction due if you were still to take the pension at 62 - a man drawing five years early will at present suffer a reduction of 25%, per p.9 of this:

http://www.lgpsregs.org/images/SecStateGuidance/EarlyRetirementGuidance

Caveat is that you wouldn't be able to draw the transferred-in benefits separately from your other LGPS benefits.

That's what my gut feeling is too - contrary to what I was expecting. It is guaranteed until 26th April. It's good to hear it from someone hugely more knowledgeable. Thanks.

kidmugsy

Searcher2 wrote: »

I am not sure if you are being sarcastic.

Nothing sarcastic about it. It was crap English as I implied. See Keep Pedalling's post as a demo of how unclear the writing was.

Searcher2

kidmugsy wrote: »

Nothing sarcastic about it. It was crap English as I implied. See Keep Pedalling's post as a demo of how unclear the writing was.

Okay.. thanks. I hope things become clearer when they send more details through. To me it read like that would be my pension on retirement.

pandora205

There's no way OP would get £29k LGPS pension unless their earnings are way higher than 30k in the future.

(I have 36 years in the scheme and a reasonably high salary and mine will be several thousands less than this - and I will have the protection of the pre-2014 final salary scheme when I retire in 4 years time).

hyubh

pandora205 wrote: »

There's no way OP would get £29k LGPS pension unless their earnings are way higher than 30k in the future.

It's a prospective transfer into the CARE scheme, so salary (current or future) has nothing to do with it. The cause appears to be an exceedingly generous (mis-)calculation of the transfer value by the old scheme's administrators...

xylophone

OP, when you left your old scheme were you given a statement of deferred benefits? A Scheme booklet?
This would show post 88 GMP and the excess.

How is the GMP revaluing in deferment? And the excess?

When the pension comes into payment at 62, the scheme will be obliged to increase your pension in payment by scheme rules - what do the scheme rules say on this point? Is it RPI? Something else?
Is there any abatement to take account of state pension?

From GMP age, (60 for a female/65 for a male) the scheme will be obliged to split your pension into GMP and the excess and is only obliged to inflation link the GMP up to 3% - given the change to state pension, if inflation is higher will the scheme inflation link the GMP to the level of CPI inflation?

You have rechecked the CETV quoted by the old scheme?

You will check your state pension position after April 2016?

hyubh

xylophone wrote: »

How is the GMP revaluing in deferment? And the excess?

The OP has already said that overall, his overall pension has gone from £6,100pa on leaving in 1999 to 'about £10,000pa' now. No doubt different parts are attracting different increases, and overall that's a bit better than what an LGPS pension deferred in 1999 would have increased by... though not significantly more relative to the size of the CETV.

Is there any abatement to take account of state pension?

If there is, isn't that still further reason to transfer?

From GMP age, (60 for a female/65 for a male) the scheme will be obliged to split your pension into GMP and the excess and is only obliged to inflation link the GMP up to 3% -

No different with the LGPS.

You will check your state pension position after April 2016?

With respect, I think you're clouding the water here - how does that impact the decision to transfer or not? The transfer will be between two contracted out schemes, so in itself will have no affect on state pension entitlement.

xylophone

If there is, isn't that still further reason to transfer?

The point is that the OP needs to check?

He might also wish to check whether his "old pension" (at least the excess, if not possibly the rest, depending on what happens after single tier re GMP) will increase by RPI rather than CPI.

If the GMP inflation linking will indeed disappear in his old scheme in single tier, then he might well be interested in link below in terms of his proposed transfer

https://forums.moneysavingexpert.com/discussion/4920460

See discussion above but particularly POST 14 in respect of LGPS.

And he might wish to double check his transfer value?

hyubh

xylophone wrote: »

If the GMP inflation linking will indeed disappear in his old scheme in single tier, then he might well be interested in link below in terms of his proposed transfer

https://forums.moneysavingexpert.com/discussion/4920460

See discussion above but particularly POST 14 in respect of LGPS.

Were the (preliminary) opinion of the DCC officers cited in that post to hold good, then that would be even more reason to transfer. In reality I'd ignore it however given the scheme still awaits the government minister responsible to rule either way - see the LGPC's discussion here:

http://www.local.gov.uk/documents/10180/11913/LGPC+Update+-+July+2014.pdf/73bca442-fe1f-4e80-9c77-fc2245ba5ba6