LGPS Transfer Advice

Cameron1590_2

Hello All,

I have requested to transfer my last work place pension into my new employers pension scheme which is the Local Government Pension Scheme.

My previous pension provider has given a transfer value of £555.61 and the LGPS has said this would buy me an additional £121.94 per year in my retirement or £37.34 per year for an eligible person/partner upon my death.

The old pension is with B&C E - The Peoples Pension, and currently has a value of £566.68 with a projected value at retirement of £942.63.

I think I would be best to transfer the pension into the LGPS as its protected from loss and inflation however would like to double check with someone who is knowledgable with pensions!

Thanks,

neilvw

How far away from retirement are you?

Sounds a great deal almost regardless of that though!

Cameron1590_2

neilvw wrote: »

How far away from retirement are you?

Sounds a great deal almost regardless of that though!

I'm only in my early 20's so have a long old way to go until retirement.

Thanks

dunstonh

The old pension is with B&C E - The Peoples Pension, and currently has a value of £566.68 with a projected value at retirement of £942.63.

followed by:

I'm only in my early 20's so have a long old way to go until retirement.

Those two bits together mean the projection from B&CE is using very low assumptions and inflation. As do most pension projections now.

This is not to say whether it is a good idea or not to transfer it. Just that you have to take the B&CE projection with a pinch of salt. Its more likely to be around £17k in monetary terms and not £942. The LGPS has indexation on the income as well though.

Cameron1590_2

Thanks for the replies, does it seem like the right think to do? I'm still very young in terms of retirement and it's such a small amount it won't make a huge difference when I retire however I still want to put it in the best place possible!

Thanks

System

Hi

You can see that IF the pension was guaranteed for a minimum of 10 years then the 555.61 has bought at least £1219.40, and with CPI you would expect more.

Commutation at 12:1 could achieve £365.82 as a lump sum and 10 yrs of pension being £914.55.

ONLY my view, but it does seem a good choice to transfer, you make your own mind up.