LGPS - Amalgamation 'Offer'

cloud_dog

Hi

My wife has worked for our local school for a number of years, as a lunchtime supervisor when our daughter was young and for the last couple or so years as a TA. Her change to a TA pretty much coincided with the LGPS witching to a CARE scheme.

We are not talking big numbers here but the LGPS has 'offered' to amalgamate her pre-CARE scheme/benefit in to the CARE scheme. The pre-CARE was accrued under the 1/60th and is currently valued at approx £265 per year.

My simple head is telling me to simply retain the pre-CARE benefits in that scheme (1/60th), and let the new benefits accrue within the CARE scheme.

Any thoughts / opinions from those fabulous LGPS experts out there?

Rich2808

Can you give us an idea of timescales and pay.

How many years has she worked at the school - does she have pre 2008 service? Did she keep continuous service throughout her time there in the LGPS and has her salary increased as a result of becoming a TA and would she expect to see salary rises and promotion in the future. Final salary benefits are normally better for those expecting career progression and pay rises - CARE is often better for those at the top of their scale or unlikely to see promotion and pay rises.

Becuase it will affect the advice given - although admittedly as its a small final salary pension probably not massively.

hyubh

cloud_dog wrote: »

My simple head is telling me to simply retain the pre-CARE benefits in that scheme (1/60th), and let the new benefits accrue within the CARE scheme.

Assuming the gap between leaving the LSA post and starting the TA one is under 5 years, the pre-April 08 membership would now go against the final pay (whole-time equivalent) in her current job, rather than the old. So if her rate of pay on leaving the TA post were to beat that of the LSA one, after inflation (an important caveat), then it would be best to have combined the memberships (since the 1/60ths will now be of a higher final pay figure).

Silvertabby

hyubh (post 3) is right.

When comparing the 2 salaries, don't just go with the money your wife actually received - her pensionable pay in this scenario is what she would have received had she been full time.

cloud_dog

Thanks all for your posts. Have been out for the day, will post the breakdown info LGPS provided shortly.

cloud_dog

More info on the service....
Lunchtime Supervisor: 25/11/2008 – 31/03/2016
Teaching Assistant: 01/04/2016 –

So the detals for employment for the LTS role is below, and the TA role is just over 2 years (approx salary £7.5k):

Nothing is set in stone wrt retirement but we would probably look for my wife to work another 9 years as a TA until an early retirement date. I do not envisage taking the LGPS early, taking it at NRA (67).

hyubh

cloud_dog wrote: »

So the detals for employment for the LTS role is below, and the TA role is just over 2 years (approx salary £7.5k)

It's the respective whole/full-time equivalent salaries that count, not actual salary. The statement for old post quotes £15204.73 (is a slightly funny number because it's a 12 month average), so you want the equivalent figure for that.

cloud_dog

hyubh wrote: »

It's the respective whole/full-time equivalent salaries that count, not actual salary. The statement for old post quotes £15204.73 (is a slightly funny number because it's a 12 month average), so you want the equivalent figure for that.

I think the number quoted may relate to the entire earnings during the period TBH.
(EDIT: I think I understand what you mean, insofar as that was the WTE final salary?)

As a lunchtime supervisor I think my wife basically worked 1hr 20mins per day, so 6.5hrs per week. I'm unsure of the 'whole' hours for a full time employee so cannot make a WTE calculation but, based on a 37.5hr working week this role would have been approx a 0.2WTE.

She currently works approx 18hrs per week so approx a 0.5 WTE.

Hope this helps.

Silvertabby

No, the final pay figure of £15,2014.73 is the whole time equivalent annual salary/pensionable pay for the LSA post as at 31 March 2016, even though the CARE system started 2 years earlier. This is because the final salary element will always be based on the pensionable pay as at the date of leaving.

To compare the two, you need to find out what your wife's whole time equivalent pensionable pay (old rules) would be - ie, if she worked full time.

cloud_dog

Silvertabby wrote: »

No, the final pay figure of £15,2014.73 is the whole time equivalent annual salary/pensionable pay for the LSA post as at 31 March 2016, even though the CARE system started 2 years earlier. This is because the final salary element will always be based on the pensionable pay as at the date of leaving.

To compare the two, you need to find out what your wife's whole time equivalent pensionable pay (old rules) would be - ie, if she worked full time.

Hi...thanks for the update.

I'm going to ask possibly a naieve question but how do I find that out?

There is nothing in the information provided that confirms this, and nothing in previous pension statements either. I asume we would have to request that confirmation from the LG employer?

Silvertabby

cloud_dog wrote: »

Hi...thanks for the update.

I'm going to ask possibly a naieve question but how do I find that out?

There is nothing in the information provided that confirms this, and nothing in previous pension statements either. I asume we would have to request that confirmation from the LG employer?

Yes, from her employer - but be careful. The final salary linked pensionable pay is just contractual pay, whereas CARE pensionable pay includes overtime and other extras.