LGPS Pension + Salary must be less than previous salary

billpaul812

Being made redundant and will be taking my pension but may decide to get another job if I can.

Been advised that if I work in local government again then if the salary plus my pension is greater than my max qualifying salary then I may face claw back on my pension.

Anyone throw any more light on this please?

BobQ

billpaul812 wrote: »

Being made redundant and will be taking my pension but may decide to get another job if I can.

Been advised that if I work in local government again then if the salary plus my pension is greater than my max qualifying salary then I may face claw back on my pension.

Anyone throw any more light on this please?

There is a similar rule in the civil service, they refer to it as abatement of your pensions. The idea is that you should not be paid by the public purse more than you did before retirement.

This is an example which suggests that the LGPS also use the term abatement

https://www.westsussex.gov.uk/media/3189/wscc_pension_fund_abatement_of_pension_rules.pdf

Best option is to choose another employer

billpaul812

BobQ wrote: »

Best option is to choose another employer

Agreed, but can it be worked around by contracting?

hyubh

billpaul812 wrote: »

Being made redundant and will be taking my pension but may decide to get another job if I can.

Been advised that if I work in local government again then if the salary plus my pension is greater than my max qualifying salary then I may face claw back on my pension.

Anyone throw any more light on this please?

Strictly speaking, for final salary benefits, abatement - i.e. whether to reduce pensions in payment for rejoiners so that pension + new salary is not > old salary on leaving - is an administering authority discretion, not a scheme rule or employer discretion. In other words, different LGPS funds (counties) might have different policies on this.

billpaul812

Ummm, interesting so worth contacting the LGPS authority then!

What about working in local government as a contractor though?

Silvertabby

Not all LGPS funds apply the abatement. The one I worked for didn't. (no, I'm not going to indentify myself by saying which authority!)

You will need to check your (prospective) new fund's policy.

AlanP_2

I would have thought that if you were a contractor you would not be "employed" within local gov so could be OK.

If you are employed by an agency maybe?

bigadaj

AlanP wrote: »

I would have thought that if you were a contractor you would not be "employed" within local gov so could be OK.

If you are employed by an agency maybe?

There have been soem bad publicity cases of senior managers doing this in the public sector so there may be specific policies on this as well now.