Intra-LGPS transfers

Johnnyboy11

One for the LGPS gurus...


Way back in 1999 I changed employers and transferred my pension from Strathclyde Pension Fund to Lothian Pension Fund, and received a Statutory Notification crediting my 6-years membership to the new scheme, which was fine.


However, my salary in the new job was about 12% lower than in the old job, and I wondered if my 6-years membership credit should have been increased proportionately.


Is this worth challenging?

Silvertabby

Johnnyboy11 wrote: »

One for the LGPS gurus...


Way back in 1999 I changed employers and transferred my pension from Strathclyde Pension Fund to Lothian Pension Fund, and received a Statutory Notification crediting my 6-years membership to the new scheme, which was fine.

However, my salary in the new job was about 12% lower than in the old job, and I wondered if my 6-years membership credit should have been increased proportionately.

Is this worth challenging?

No. This is way LGPS interfund transfers have always worked.

The letter(s) you received before you opted to transfer your benefits won't have given actual advice (not allowed) but they should have said something like " you may wish to compare your salaries as, once transferred, your previous service will be calculated using your current salary". You should have/would have been given the option of leaving your benefits deferred with your previous scheme (and thus on your old, higher, salary) if that appeared to be more beneficial.

How do your salaries compare now?

28-Jan-99 to 27-Feb-99 1.6011
28-Feb-99 to 27-Mar-99 1.5969
28-Mar-99 to 25-Apr-99 1.5926
26-Apr-99 to 25-May-99 1.5912
26-May-99 to 25-Jun-99 1.5898
26-Jun-99 to 25-Jul-99 1.5884
26-Jul-99 to 25-Aug-99 1.5868
26-Aug-99 to 25-Sep-99 1.5854
26-Sep-99 to 25-Oct-99 1.5840
26-Oct-99 to 25-Nov-99 1.5825
26-Nov-99 to 25-Dec-99 1.5811
26-Dec-99 to 25-Jan-00 1.5797

Update your old salary as at your date of leaving by using the appropriate multiplicator factor from the tables. If that is now lower than your current salary, then you've benefitted. However, if your current salary is still lower, then I'm afraid that what's done is done.

hyubh

Johnnyboy11 wrote: »

However, my salary in the new job was about 12% lower than in the old job, and I wondered if my 6-years membership credit should have been increased proportionately.

Is this worth challenging?

As Silvertabby says, from the member's point of view, transfers between LGPS funds are treated identically to aggregations within a single LGPS fund - service details are just copied over.

Johnnyboy11

Many thanks to you both, much appreciated. I did get a couple of big promotions in my new job (and associated pay rises), so benefitted in that regard. Thanks again.