LGPS v NHS Pension Scheme

sooty&sweep

Hi

I was originally employed by the NHS & my pension started there.

I took a job with a Local Authority & transfered in my NHS pension into the LGPS.

Between the two I have just over twenty years pension contributions.

I was made redundant from the Local Authority earlier this year & I've been offered a job with a NHS CCG.

I'm presuming I will need to make a decision as to whether I leave those 20 + years where they are or whether I should transfer them into the NHS pension scheme ?

Any advice ?

I'm not yet & I've always just into the pension scheme but I don't know much about the differences between the two.

Jen xxx

hyubh

sooty&sweep wrote: »

I took a job with a Local Authority & transfered in my NHS pension into the LGPS.

When was this?

I'm presuming I will need to make a decision as to whether I leave those 20 + years where they are or whether I should transfer them into the NHS pension scheme ?

As the gap between the LA and new NHS employments is less than five years, transferring would mean you re-establish a final salary link for pre-April 2014 service. The last final salary versions of the LGPS and NHS schemes were practically identical (NPA 65, 1/60ths, optional lump sum at 12/1), so if you had previously transferred into the LGPS after April 2008, the only factor really to consider is whether your new NHS pay is likely to beat inflation over time. If it likely will, then transferring should be a no brainer.

Caveat: this assumes the final salary part of your LGPS pension (i.e., the part from service before April 2014) will effectively become a NHS 2008 scheme service credit when transferred, and so maintain an NPA of 65 rather than SPA. Even if that isn't the case though, the service credit would be adjusted upwards to take account of the fact.

As for the CARE part (i.e. service from April 2014 to earlier this year), transferring is neutral because you would maintain the LGPS' (lower) revaluation rate for it. (Well: almost neutral. The LGPS revaluation rate for actives this year was actually negative due to a negative CPI rate the previous September. While revaluation in deferment is based on CPI too, it has an effective underpin of 0%. I wouldn't factor the possibility of deflation very highly however.)

Silvertabby

The two schemes are similar, but not identical. By now, you should have received a deferred benefit statement from the LGPS showing your estimated benefits at normal retirement age (State pension age).

You could tell NHS pensions that you have deferred benefits with the LGPS that you may transfer in. Once all the paperwork has finished going to and fro, NHS pension will issue you with an estimate of how much NHS pension the LGPS transfer valuation will buy you.

You can then compare the two and decide what you want to do.

Don't leave it too long - transfers in have to be made within 12 months.

sooty&sweep

Thank you both,

I took a job with a local authority in 1996.

I'm not yet 50 so I still have a few years to go.

Cheers

Jen

hyubh

sooty&sweep wrote: »

I took a job with a local authority in 1996.

In which case, still get a transfer-in quotation from the NHS scheme when you rejoin it, but keep in mind minimum pension age differences - as your LGPS service began in 1996, you'll have 85 year rule protections so long as the LGPS pension is left where it is (i.e. the major part of it can be taken at 60 without any actuarial reduction). On the other hand, this would be factored into any NHS scheme service credit... so swings and roundabouts.