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Transfer defined benefit pension pot to LGPS?

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  • hyubh
    hyubh Posts: 3,722 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Kate36 wrote: »
    I have just come across another figure on my DB update which says the current value of my pension is £4310; so if I apply a 2.5% compounded interest to that over the next 20 years, I arrive at a figure of £7062.44 - which is basically the amount the LGPS benefit.

    No, because as Silvertabby says, the LGPS figure is the value *now* - it would get added to your regular CARE pension accrual for the year. Active member revaluation in the LGPS is CPI (will be negative if CPI is negative), with early leaver revaluation for excess being CPI with a floor of 0%. Statutory revaluation for private sector schemes is (roughly) a capped version of the LGPS one, as you've alluded to yourself - and it is almost unheard of for schemes to offer more than statutory revaluation for early leavers.

    The only way it seems to me that it might be worth keeping the private sector pension separate is if (a) it contains a notable GMP element, and the scheme uses fixed rate GMP revaluation, (b) for some reason increases in payment are particularly notable (might be, though I would guess not), and/or (c) it carries an NPA of (say) 60 (so, many years short of your LGPS NPA).
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    hyubh wrote: »
    The only way it seems to me that it might be worth keeping the private sector pension separate is if ... it carries an NPA of (say) 60

    Is there a similar consideration for the old LGPS pension?
    Free the dunston one next time too.
  • Kate36
    Kate36 Posts: 16 Forumite
    Thanks everyone; I really appreciate your input. I'm waiting for the DB scheme to get in touch with me in order to clarify a couple of queries - just to be sure I am not missing anything. Otherwise, I am erring on transferring it to the LGPS.
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