LGPS statement wrong

Muscle750

My wife has been employed by the council from 1996 to now and has been in three different postions in that time . On her last statement it says the following
1/80ths 6 years and 79 days
1/60ths 4 years and 215 days
CARE 2 years and 275 days

In total this adds up to approx 13.5 years
However she has been employed from 1996 21 years
She has contacted the pension dept and they have clarified she started with them in 1996 yet could offer no reason as why the difference in length of service etc. Infact they couldnt put the phone down quick enough. She has now emailed them asking for a full explanation.
One question thou is after leaving her last job and has now started a new one with a 5 month break between the two. She has had to start her pension from start so to speak. She is now earning half of what she was in her last job. She is 54 years old. She has been given the option to combine the pensions into one pot so to speak as far as i can understand or leave them as they are. My concern is that now she is earning far less any bad move on the combining the pots etc could be quite serious. Ive suggested she sees a IFA.

Silvertabby

Has she ever worked part time? If so, her pre 2014 service will be condensed into whole time pensionable service.

For example, if she worked 18.5 hours per week for 2 years then she would have 2 years calendar service, but 1 year pensionable service. This one year would then be calculated on the whole time equivalent pensionable pay.

As for combining her pension records, you need to be looking at her whole time equivalent salary. If she is now earning less because she is working fewer hours, then you need to compare what she would be earning if she were full time, against her previous pensionable pay. This is only for the final salary link - going forward, CARE is calculated on her actual pay.

hyubh

Muscle750 wrote: »

My wife has been employed by the council from 1996 to now

I nearly spilt my drink! Does Mrs Muscle know of your online crusade against public sector pensions? I hope you've told her to do the decent thing and opt out ASAP, and while she's about it, stop laughing in the face of hard-pressed private sector workers

On her last statement it says the following
1/80ths 6 years and 79 days
1/60ths 4 years and 215 days

If her employment was continuous between 2008 and 2014, then clearly there is an assumption of some part-time working there, as Silvertabby says. Does none of the statements include both 'qualifying' as well as 'reckonable' service figures? If so, the former will be calendar service, the latter calendar service pro-rated for any period of part-time working. On the flip side, and again as Silvertabby says, the final salary used for final salary benefits will be her whole-time equivalent final salary - this prevents sharp changes of hours near the end having an outsized effect on the pension.

My concern is that now she is earning far less any bad move on the combining the pots etc could be quite serious. Ive suggested she sees a IFA.

No need to do that.

bigadaj

I trust mr muscle has been consistently berating his better half for many years about the way she has been abusing the taxpayer.

Silvertabby

Curious - mr muscle has gone from kicking off to very quiet!