Should i transfer my small pension to LGPS?

System

Hi

The choice is not clear, it never is? How many times have you seen a crystal ball that foretells the future and is clear and bright and shiny?

As an ex LGPS pensions officer, some of what I think is based on my own personal views, and therefore has no strength or validity.

The LGPS is a very good scheme, membership is something I value.
The scheme has some strengths, like survivor payments for partner and/or children.
Payments for Death in Service.
Also Ill Health.

So my own view is it is a good scheme to be in and I would transfer in.

I HAVE NO EVIDENCE to support my view, I do have an excellent pension provided by the LGPS, so I may be biased.

Having 2 pension providers could result in 2 death benefits being available, if the need arose. So there are valid reasons to stay put.

The forecasts are just as reliable as long range weather forecasts, you know there will be some, just not sure what.

Some may say that a school converting to an academy will leave the LGPS asap, and it indeed it could as the scheme is quite costly for the employer and quite beneficial for the employee.

I believe the pounds shillings and pence strongly suggest LGPS, the peace of mind factor points to the LGPS, and you can have a separate fund for early retirement in the form of an AVC or even a new fangled ISA.

Personally I would go with the LGPS and know I had options outside it for top-ups etc.

hyubh

johndough wrote: »

The LGPS is a very good scheme, membership is something I value. The scheme has some strengths, like survivor payments for partner and/or children. Payments for Death in Service. Also Ill Health. So my own view is it is a good scheme to be in and I would transfer in.

Being in the LGPS and transferring in an old Pensions Trust DB are two separate questions. The first is an obvious 'yes', the second not so.

Having 2 pension providers could result in 2 death benefits being available, if the need arose. So there are valid reasons to stay put.

Also the earlier NPA attached to the Pension Trust DB.

Some may say that a school converting to an academy will leave the LGPS asap

It can't - academies are scheduled bodies like councils. Even the current government can't fail to realise that changing this would quickly cause a funding crisis, as much for the academies themselves having to pay off historic liabilities in one go as for the LGPS itself.

I believe the pounds shillings and pence strongly suggest LGPS

How? The numbers quoted so far imply the DB with the Pensions Trust gives a higher pension than the transferred in LGPS amount.

the peace of mind factor points to the LGPS

Marginally - the Pensions Trust operates a 'last man standing' approach to pension liabilities. It's a bit like an LGPS fund solely composed of community admission bodies.

you can have a separate fund for early retirement in the form of an AVC or even a new fangled ISA.

Those options remain whether the OP transfers or not.