LGPS V Salary increase

w00519772

I worked in the public sector for a number of years up to 2013. In 2013 by department (IT) was outsourced to a private company and I had to sign a new contract of employment (it was not transferred through TUPE). There was a consultation period.

I was offered a £2000 pay rise. I moved from the LGPS to a company pension scheme (where the company contributes 5%).

Obviously the LGPS is very appealing. This link suggests that current rates are 19.5%: http://www.lincolnshire.gov.uk//Download/66426.

I accepted the £2000 pay rise. I am wandering in hindsight whether I should of asked for more. Say my gross salary is 3000 PCM:

(19.5/100)*3000)*12=7020

Have I missed a trick here?

hyubh

w00519772 wrote: »

Obviously the LGPS is very appealing.

If I recall your previous posts correctly, this will be the same LGPS you had opted out of while still a council employee, right...?

This link suggests that current rates are 19.5%: http://www.lincolnshire.gov.uk//Download/66426.

It will be employer (and fund) dependant. If your current employer had entered the fund as an admission body, it's rate could potentially have been much higher (or alternatively, maybe less).

I accepted the £2000 pay rise. I am wandering in hindsight whether I should of asked for more. Say my gross salary is 3000 PCM:

(19.5/100)*3000)*12=7020

Have I missed a trick here?

You 'missed a trick' by opting out in the first place. I'm not 100% sure of the rules at the time (I'd have to look them up), but it may have been the case that even if your new employer did become an admission body, your not being an active member at the point of the transfer may have excluded you from joining at a later date... and if you couldn't have ever joined once transferred, there would have been nothing for you to bargain away for a higher salary.

daveyjp

You are making an invalid comparison. The 19.5% changes when revaluations are carried out.

The calculation required is what you would have received under LGPS ( your LGPS provider can let you know) and then how much you would need to invest from your private sector salary to secure anywhere near the LGPS pension income plus the annual inflation increases. Your Union could have advised.

How much are you saving alongside the 5% company contribution?

A £2,000 pay rise looks to have been a very good deal for the Council, thats why they outsource.

hyubh

daveyjp wrote: »

You are making an invalid comparison.

Not necessarily, given the context - if he had transferred under 'Fair Deal' and it were now the point where his employer was looking to pull out of the LGPS, their current contribution rate would be a reasonable marker to start negotiations with, notwithstanding past vs. future service elements etc.

w00519772

hyubh wrote: »

If I recall your previous posts correctly, this will be the same LGPS you had opted out of while still a council employee, right...?



It will be employer (and fund) dependant. If your current employer had entered the fund as an admission body, it's rate could potentially have been much higher (or alternatively, maybe less).



You 'missed a trick' by opting out in the first place. I'm not 100% sure of the rules at the time (I'd have to look them up), but it may have been the case that even if your new employer did become an admission body, your not being an active member at the point of the transfer may have excluded you from joining at a later date... and if you couldn't have ever joined once transferred, there would have been nothing for you to bargain away for a higher salary.

I was an active member at the point of transfer. When I signed the new contract I moved from the lgps to a corporate pension scheme.

hyubh

w00519772 wrote: »

I was an active member at the point of transfer. When I signed the new contract I moved from the lgps to a corporate pension scheme.

At the risk of sounding pedantic, you reported otherwise before:

w00519772 wrote: »

Originally Posted by hyubh
OK, makes sense.

Hmm, now I'm a bit confused again. Is the following about right, or am I still misunderstanding things?

1. At the point of the TUPE you were opted out of your public sector pension scheme. (Just trying to understand your apparent unconcern at having lost an extremely valuable benefit here.)

2. TUPE/'Fair Deal' conditions then ended on your agreement to accept new terms of employment in Aug 2013. (Not unusual - can happen in public sector to public sector TUPEs too.)

[snip]

Point one and point two are correct.

That said, good work getting the company to backdate contributions at the higher rate - I confess I wasn't confident originally that you'd be able to get that without a fight.