Capita LGPS statement help.

Dunnsdale

Finally got the online statement to 31st March 2015.

Membership to 31/3/2008 is shown as 16y 137 days Qualifying years/ 25y 91 days Reckonable years.Can someone please explain the difference between Qualifying and Reckonable years please?

hyubh

Dunnsdale wrote: »

Membership to 31/3/2008 is shown as 16y 137 days Qualifying years/ 25y 91 days Reckonable years.Can someone please explain the difference between Qualifying and Reckonable years please?

Hmm, do you mean the other way round, i.e. the longer period is the 'qualifying' service and the shorter period the 'reckonable' service? If so, this will be calendar service vs. calendar service pro-rated for any periods of part-time working. The latter is what is used for determining final salary benefits for pre-April 2014 membership (since the 'salary' used in that calculation is always full-time equivalent), the former for 85 year rule protections, as they apply (if they do, they allow for retiring before 65 without an actuarial reduction, to some extent).

If many years ago you had a transfer-in that wasn't just from another LGPS fund, then the qualifying service may also include calendar service in the old scheme, if that was greater than the reckonable service in the LGPS bought from the transfer in (I'd have to look it up, but top of my head this would apply to transfers in up until the late 90s).

Going back even beyond that, 'qualifying service' meant local government employment before you actually joined the pension scheme, which once you did then counted half for benefit purposes. That was way before your time however.

Dunnsdale

Thanks hyubh. The Reckonable membership is the larger figure of 21y 91d.

There was a transfer in from Standard life in 1995 that "bought " a membership period of 4yrs 248days..after a 7 year absence from the LGPS.

hyubh

Dunnsdale wrote: »

The Reckonable membership is the larger figure of 21y 91d.

Weirdo Capita using their own funky software then ;-) I'd clarify with them that by 'qualifying membership' the statement means pro-rated for part time working and by 'reckonable membership' it means plain calendar service. Presumably you have actually had periods of part time working...?

There was a transfer in from Standard life in 1995 that "bought " a membership period of 4yrs 248days..after a 7 year absence from the LGPS.

Personal pension...? The possibility of getting more notional service for 85 year rule purposes over the service actually bought for benefit purposes only pertained (I think - I'd have to check) to other occupational pensions.

Dunnsdale

Thanks hyubh.The pension is my wifes.No part time working throughout her career.She left local government in 1988 for 18 months,at which point she took out a personal pension. On returning to LG she didn't rejoin the LGPS until 1995 (big mistake).She has tried to make up some ground by buying additional years since 2003.

hyubh

Dunnsdale wrote: »

No part time working throughout her career. [...] She has tried to make up some ground by buying additional years since 2003.

Ah... the additional 'qualifying years' are then probably the additional years bought to date. Still worth double checking with Capita. Also worth double checking that the amount above the 'reckonable' years corresponds to what it should be relative to the original added years contract.

Dunnsdale

Thanks again hyubh.I think you are right.The personal pension bought years totalling 4/248 and the additional purchase years if paid up to July 2018 would total 5/336.Add them together at this point and that would probably account for the discrepancies. Is it ever worth getting an IFA to checkout a LG pension?

hyubh

Dunnsdale wrote: »

Is it ever worth getting an IFA to checkout a LG pension?

No, figure it out yourself - it won't be overly complex, and I wouldn't expect the typical IFA to have a high degree of LGPS knowledge.