should i combine final salary lgps with current lgps?

katiesaving

Hi,

I have a final salary pension with lgps from pre 2014. I started a new lgps job in 2016 (which is now based on the care scheme)

I've received a letter asking if I want to combine the deferred benefit from 2014 which will 'retain its final salary link so will be based on your current salary'. As my pay has gone from £22k pre 2014 to £32k now, this seems good. But is it too good to be true?

Any advice appreciated.

Thanks

Silvertabby

No, it isn't too good to be true.

When did you join the LGPS? How old are you? If you joined before 2006, then you may have some Rule of 85 protections if you leave your records separate (ie, take these benefits before State pension age) but I'd be surprised if this amounts to more than the increase in your pension due to the final salary uplift.

katiesaving

Hi,

I'm 33.

Joined lgps in 2010 until 2012, so we're not talking big amounts, but being able to use my current salary as my final one rather than the one I left with in 2012 for that chunk of final salary pension does seem good.

Thanks for the help.

Silvertabby

In that case it really is a no-brainer - combining your records means that your 2010 to 2012 service will be calculated on your final salary when you leave, rather than your old salary.