LGPS transfer to NHS pension or get a refund?

Lilly_of_the_Valley

Hi, I'm hoping someone may be able to point me in the right direction...


I left my employment 31/3/18, of which I was contributing to an LGPS and returned to full time study. I have now been employed by the NHS and have opted in to the pension scheme.


I have more than 3 months service, but less than 2 years with the LGPS so my options are:
1) refund of contributions less tax and NI
2) transfer amount to another pension scheme
3) leave it where it is for now


I have received a letter from the LGPS stating the following:
"...you have not accrued enough service to have a pension benefit with the X pension fund, and you must either have your contributions refunded or transfer them to another pension scheme.... Your contributions will NOT provide a retirement pension in the future."


When I have called them, they have been less than helpful, so I am turning to you for some steering. I have trawled the documents available through their website and government websites and feel more confused now than when I began.


Any help is greatly received.


Thanks

kidmugsy

Lilly_of_the_Valley wrote: »

I have more than 3 months service, but less than 2 years with the LGPS so my options are:
1) refund of contributions less tax and NI

That's a refund to you of your contributions. You will entirely lose the benefit of the employer's contribution.

Lilly_of_the_Valley wrote: »

2) transfer amount to another pension scheme ....

Your [LGPS] contributions will NOT provide a retirement pension in the future.

Unless an expert can see some reason not to that escapes me, I'd think that a transfer into the NHS scheme is your best bet. I suggest that you establish how long you can delay for before you lose the ability to do the transfer, just in case you decide you'd like to leave the NHS in the near future.

Triumph13

As kidmugsy says, you will be WAY better off transferring. I suspect it will probably give the added bonus that if you leave this job early too you won't be in the same position again as I believe most schemes let you leave your benefits deferred if you have transferred in, even if you don't meet the minimum service length. Hopefully someone with specific knowledge of the NHS scheme will be able to confirm that.

Dox

Transfer or lose the employer contribution....

dunstonh

Last time I saw one of these, the return of contributions was about 10% of the transfer value. A complete no brainer to transfer it.

Silvertabby

Transfer all the way - but you need to do it within 12 months of joining the NHS.

Dunstonh is right about the refund (after tax) being barely 10% of the transfer value.