Amalgamating NHS and LGPS pensions

slider18

I think the actual reduction would be 32% according to the local government pension website so it would appear i may lose quite a bit of the benefit gained from amalgamating them if i definitely want to retire at 60

Silvertabby

I think the actual reduction would be 32% according to the local government pension website so it would appear i may lose quite a bit of the benefit gained from amalgamating them if i definitely want to retire at 60

Not necessarily, as long as the final salary link is kept if you combine both of your records.

Keeping it simple, with pension only (there's an automatic lump sum with your first LGPS benefits), we have:

First record only:

£28824.00 / 80 x 16 (years) = £5764.80 x 1.4108 (cost of living increases to 2016) = £8132,98 annual pension.

Combined records (keeping final salary link):

£63000.00 / 80 x 16 = £12600 - 32% (max) early retirement reduction = £8568.00 annual pension.

Career average benefits from 1 April 2014 to date of leaving will be the same for both examples.

hyubh

Silvertabby wrote: »

Not necessarily, as long as the final salary link is kept if you combine both of your records.

Would the OP get the benefit of counting the NHS scheme membership for 'continuous break' rule purposes when aggregating the earlier LGPS service, even if the NHS pension is left where it is and not transferred? (That's a question not a statement by the way!)

Silvertabby

“ Not necessarily, as long as the final salary link is kept if you combine both of your records.
Originally posted by Silvertabby ”
Would the OP get the benefit of counting the NHS scheme membership for 'continuous break' rule purposes when aggregating the earlier LGPS service, even if the NHS pension is left where it is and not transferred? (That's a question not a statement by the way!) Posted by hyubh

The honest answer is 'I don't know' as the rules regarding amalgamation changed drastically just after I retired. That's a question for the OP's LGPS provider!