Small transfer to LGPS

MX5huggy

hyubh wrote: »

You were possibly overthinking things - it gets added to your CARE pension account, so is index linked before and after NPA in the same way as your regular benefits in the scheme (CPI while an active member, CPI with an effective underpin of 0% if leave before retirement, CPI with an effective underpin of 0% after retirement). As pension benefits in your annual benefit statement will be quoted in annual terms, so will any transfer in credit.

Dare I ask, as you found the details lacking, did you contact the administrator, and if so, what was their response...?

I received the letter Friday night so not had the opportunity to contact them. I thank the collective wisdom of MSE for filling in the blanks which will make having a conversation much easier.

The communication from them has been next to nonexistent, as a new joiner I would have expected some sort of welcome pack, I have bumbled into their website which is as clear as mud for someone who isn't effected by legacy issues. For instance I don't really know what the benefits are apart from general knowledge that I should stay in it.

MX5huggy

kidmugsy wrote: »

In a sense it might be reversible since LGPS is the only large government DB scheme from which you are allowed to transfer out to a money purchase scheme. If ever you leave LGPS that might be useful to you.

Interesting, as I can't imagine working in LG for 30 plus years.

hyubh

MX5huggy wrote: »

The communication from them has been next to nonexistent, as a new joiner I would have expected some sort of welcome pack

Probably not done any more because everything is online and the printing costs (a lot of new joiners pass through the scheme in any one year with all the part-time membership).

I have bumbled into their website

Which one? Also, check out the national LGPS members site if you haven't already:

http://lgpsmember.org

As the rules are the same (marginally different between England/Wales, Scotland, and NI), really you could look at any of the in-house administrators' sites, e.g.:

http://www.gmpf.org.uk
http://www.berkshirepensions.org.uk
http://www.wiltshirepensionfund.org.uk
http://www3.hants.gov.uk/pensions/lgps.htm

For instance I don't really know what the benefits are

GMPF's 'Your pension at a glance' section will get you going in about 30 seconds, though read a bit more around for the additional benefits.

If ever you leave LGPS that might be useful to you.

Interesting, as I can't imagine working in LG for 30 plus years.

That would be an extremely poor reason to transfer out when you did leave though.

JoeCrystal

MX5huggy wrote: »

For instance I don't really know what the benefits are apart from general knowledge that I should stay in it.

I would like to applaud your efforts on understanding the benefit and appreciate how valuable the benefits are.

Your future self will thank you for staying in the scheme and the fact you transferred in something that yield a great guaranteed return. :T

MX5huggy

Spoke to them today, there working on an Aviva fund value of £4183 (stock market has been strong this last year).

My colleague pointed out that if at retirement I opted for lump sum, sacrificing £543 annual pension would get me £6516. Showing its worth doing.

hyubh

MX5huggy wrote: »

My colleague pointed out that if at retirement I opted for lump sum, sacrificing £543 annual pension would get me £6516. Showing its worth doing.

Perhaps. You would expect better than inflation-only returns over 30 years though, no...?

(PS - £543 CPI-linked pension is a much better deal than £6516 cash, even tax free.)

MX5huggy

hyubh wrote: »

Perhaps. You would expect better than inflation-only returns over 30 years though, no...?

(PS - £543 CPI-linked pension is a much better deal than £6516 cash, even tax free.)

Yes but that's why there offering £543 not say £348 (£4183 /12).