LGPS Pension calculator

Moby

I've just tried using this calculator on my providers website. It's helpful for giving you a predicted pension figure for dates that you input. For instance it tells me if I retired on 30/05/19 my pension would be 13 126. If I retired two years later (30/05/21) my pension would be 15 673.

One problem with it is, it can't give you an estimate if you defer taking your pension. For instance if I retired on 30/05/19 but deferred taking my pension for two years until 30/05/21, the 15 673 figure would no longer apply because I'd not contributed to the pension for two years. Does anyone know of a way around this to get an estimate if you defer taking your pension?

Silvertabby

It depends on your age on 30/05/2019, your dates of pensionable service, and the breakdown of your rule of 85 protections (if any).

You could ask your LGPS provider for a normal retirement estimate as at 30/05/2019. The figures they supply should then give you some indication of the breakdown. You won't be committing yourself to anything - but they may ask for employer for an up to date pensionable pay figure, which could be a problem if you don't won't your employer to know you are thinking about retirement. However, the way round this would be to ask your LGPS to use last year's figures in the calculation.

AlanP_2

You could take the 31/05/19 figure, add estimated CPI increases on each 01/04 up until the date you want to take pension and then use the appropriate actuarial reduction factor.

May not be 100% accurate but will be within few quid I would think if you used 2% for CPI.

Silvertabby

AlanP wrote: »

You could take the 31/05/19 figure, add estimated CPI increases on each 01/04 up until the date you want to take pension and then use the appropriate actuarial reduction factor.

May not be 100% accurate but will be within few quid I would think if you used 2% for CPI.

Yes, but the appropriate actuarial factor won't be a constant for everyone. For example, if OP has full R85 protections in respect of pre 2008 service, and will be 58 this year, then the pre 2008 reduction factor would be approx 10% alone. This wouldn't apply if the pension is deferred until 60 - but just adding 10% to the 2019 estimate won't work because of the possible variable reductions to 2008 - 2014 service and 2014 onwards service.

Moby

Silvertabby wrote: »

Yes, but the appropriate actuarial factor won't be a constant for everyone. For example, if OP has full R85 protections in respect of pre 2008 service, and will be 58 this year, then the pre 2008 reduction factor would be approx 10% alone. This wouldn't apply if the pension is deferred until 60 - but just adding 10% to the 2019 estimate won't work because of the possible variable reductions to 2008 - 2014 service and 2014 onwards service.

Hi Silvertabby I have full R85 protections for pre 2008 service so long as I defer taking my pension until I'm 60, (May 2021), So if I add 10% and then reduce the 2008-14 service by 5% per annum and similar for 2014-19 service would that get me reasonably close? :-)

Silvertabby

Moby wrote: »

Hi Silvertabby I have full R85 protections for pre 2008 service so long as I defer taking my pension until I'm 60, (May 2021), So if I add 10% and then reduce the 2008-14 service by 5% and similar for 2014-19 service would that get me reasonably close? :-)

Yes, but only add 10% to your pre 2008 benefits, not the whole lot. Your 2008 to 2014 service will then be reduced for payment 5 years early (but you may have some sliding scale protections) and then your 2014 plus service will then be reduced for payment before SPA (again, you may have some sliding scale protections).

If you don't want to ask for a written estimate, then first of all try working backwards from your 2021 estimate by taking off the extra pension you would have accrued if you had carried on working - ie, your pensionable pay /49 x 2. Then guestimate the differences in the reductions.

DM10

How accurate is the online LGPS early retirement calculator.
I have a deferred pension, made up of 13 years LGPS from the 1980s and 1990s and a substantial amount from three pensions I have transferred in and a also a current LGPS pension. I rejoined local government in 2016.
I’m 57 and I have asked for a full valuation and will not make any decisions until I get this.
Using the online calculator I can afford to retire now, I’m a little worried I’m getting my hopes up and this will be dashed when the proper valuation comes in.
Also although I can’t imagine this happening, what would happen if I rejoined local government and I am receiving a LGPS pension.
Thanks

DM10

Why would my pensionable salary be below my actual salary.
I earn £20400 and my pensionable salary is £16500.

JoeCrystal

DM10 wrote: »

Why would my pensionable salary be below my actual salary.
I earn £20400 and my pensionable salary is £16500.

No idea, I would think that your employer got their own definition of pensionable pay, why don't you check with your payroll dept

Silvertabby

DM10 wrote: »

Why would my pensionable salary be below my actual salary.
I earn £20400 and my pensionable salary is £16500.

Sounds like you are looking at the pensionable pay figure linked to your final salary (pre 2014) benefits. Under the old rules, only (whole time equivalent) contractual pay counted as pensionable pay. Does your £20,400 include overtime/extras etc that wouldn't have been included in your original contract?

Post 2014, all of your salary is pensionable under CARE.

Silvertabby

DM10 wrote: »

How accurate is the online LGPS early retirement calculator.
I have a deferred pension, made up of 13 years LGPS from the 1980s and 1990s and a substantial amount from three pensions I have transferred in and a also a current LGPS pension. I rejoined local government in 2016.
I’m 57 and I have asked for a full valuation and will not make any decisions until I get this.
Using the online calculator I can afford to retire now, I’m a little worried I’m getting my hopes up and this will be dashed when the proper valuation comes in.
Also although I can’t imagine this happening, what would happen if I rejoined local government and I am receiving a LGPS pension.
Thanks

On the understanding that you have 2 separate pension records (one deferred and one current) then they should be reasonably accurate - but I would still ask for a (checked) written estimate before handing in your resignation. The reason being is that I know that the on-line calculator used to struggle with certain aspects of R85 - and leaving before age 60 could still generate a wobbly (especially as the rules allowing access to pre 2014 deferred benefits before age 60 have only recently changed). You can check to see if the calculator has been updated to include the new rules by running 2 quotes on your deferred record - one for 60 and one for 57. If the figures are the same, then it's wrong - the age 57 pension should be at least 15% less than the age 60 quote.

As for re-joining Local Government after drawing your pension - it depends. For example, if you intended to return to your old job, on the same hours and on the same salary after a short break then that's a big no-no. If you returned to a different job after a few months or even years then that's fine - just check with your pension provider to ask if they will drop your pension so that your pension plus new salary doesn't exceed your old salary (most don't do this any more, but I believe a few still do).

ADD: Back to question of 2 separate records or if your records where combined when you re-joined in 2016. I know if it sounds odd but, if your records were combined then you won't have any R85 protections. (13 years plus 3 years current employment plus age 57 = 73).
The years of membership between leaving and re-joining only count towards R85 if the first record is deferred (13 years plus X years deferred membership plus age).