LGPS combine or not question

meat_n2_reg

Hello

I have a deferred LGPS of 28 years with a salary of 30k which has been deferrrd 2 years a go when I left employment


I have recently started a part time job with is part of the LGPS , salary is only £10k



I am being asked if I want to combine both pensions



I am planning to retire @ 55 in 7 years time



Any help appreciated



Thanks

Silvertabby

How much would your (contractual) salary be if you worked full time? If you do combine, then your final salary element (your pre 2014 service) will be re-calculated using your whole time equivalent salary as at your date of leaving your current post.

Are you aware that while you will have some Rule of 85 protections in respect of your pre 2008 service, taking your benefits from age 55 will mean a substantial reduction for early payment?

meat_n2_reg

Hi



My current job full time would be £17k ( so a big drop from previous £30k)


Therefore feels that it would not be a good idea to combine ????


worth paying in to separate pension for my new job ?


Yep I know the LGPS scheme loses approx 50% if leave @ 55 , most likely try to leave at 60 ish , but possible pension @ 55 + working part time could be an option




Thanks

xylophone

I have recently started a part time job with is part of the LGPS , salary is only £10k

Worth being a member for the employer contribution but rather unfortunate that LGPS uses "net pay".

https://www.ftadviser.com/pensions/2018/10/05/altmann-and-webb-demand-tax-loophole-is-closed/

Silvertabby

meat_n2_reg wrote: »

Hi



My current job full time would be £17k ( so a big drop from previous £30k)


Therefore feels that it would not be a good idea to combine ????


worth paying in to separate pension for my new job ?


Yep I know the LGPS scheme loses approx 50% if leave @ 55 , most likely try to leave at 60 ish , but possible pension @ 55 + working part time could be an option




Thanks

Then unless you expect to get some big promotions/pay rises, you may wish to consider leaving your old pension where it is and starting again in your new job.

meat_n2_reg

Many thanks for all your help , I work as a care assistant so big pay rises not on table , but really rewarding job which I enjoy

Will not combine pensions

margaretx9

meat_n2_reg wrote: »

Many thanks for all your help , I work as a care assistant so big pay rises not on table , but really rewarding job which I enjoy

Will not combine pensions

As you have lots of pre 2008 service you also have 85 year rule protections. So you could take much/most of your old job's pension if you keep them separate at 60 without any deductions - and still carry on in your new job paying it.

In addition to the lower pay in your new job that is another benefit of not combining.

Only drawback might be if you required ill health retirement - and that would only be based on your new role's contributions but you could ask your old workplace to pay that pension too.

https://www.lgpsmember.org/more/eightyfive.php

'The Rule of 85 is satisfied if your age at the date you draw your benefits and your scheme membership add up to 85 or more (part years are ignored). If you are part-time, your membership counts towards the rule of 85 at its full calendar length. If your benefits are deferred the rule is satisfied if your age at the time you draw your benefits and the membership you would have had) add up to 85 or more (part years are ignored).'