Leaving LGPS

dream_on

Hi advice please
I'm 64, retired from NHS March 2016 and employed part time, firstly by the NHS and paid into NEST until March 2017 and then for the local council where I was enrolled in the LGPS. I was made redundant in August 2017, no redundancy payment as employed less than 2 years. I have now received information from the LGPS asking me to make a decision about the pension. I have paid in £2873.05. I can have a refund of £2298.44 (tax deducted) defer ( interest paid at 1% above base rate) or transfer to another pension (? NEST)
I am fortunate that I don't need the money at present. I have my state pension and my NHS pension.
Thank you

woolly_wombat

Hopefully Silvertabby or another LGPS expert will be along shortly...

A relative of mine is in a similar situation - worked in local govt for 12 months then for civil service. Tried to transfer LGPS pension to CS pension within a year but didn't happen (was told there was an IT glitch or some such bull). Now being asked to take a refund of LGPS contributions or to transfer.

What to do? Is it worth opening a SIPP to transfer into?

Silvertabby

Any chance of being re-employed by Local Government?

If not, then your only options (with less than 2 years LGPS membership) are a refund or a transfer to another pension scheme.

Do you still have your NEST pension? If so, you may want to look at a transfer into this instead of a refund - your LGPS transfer value will be a LOT more than the refund offered.

dream_on

Thank you Silvertabby,
With current restructuring there’s no chance of being re employed in the council. I still have my NEST pension, I put some money in last year. I will transfer the pension to there as you suggest. You’ve been very helpful

Teaandscones

If it is not possible to get another job in LG then a transfer is likely to be a much better deal than a refund.

Our pension fund accounts has a note which states that if members opt to transfer to another scheme (rather than take a refund) the cost to the scheme would be considerably higher. Hence for the member a transfer would be a better deal.