Transfer Private Pension into Gov Pension

ChrisK....._3

I want to transfer two private pensions into my current government works pension scheme
I called my payroll and they said they can't transfer private pensions into the Government Pension Scheme they can only transfer other government pensions in. I pointed out that been over 55 I could just close out the account and transfer the cash and they said that's fine.problem is a technicality that if I transfer the cash then I have to pay tax before it goes into the government pension scheme.this does seem like a technicality I need to get around as anyone got any ideas?

dunstonh

problem is a technicality that if I transfer the cash then I have to pay tax before it goes into the government pension scheme.

What makes you think you can pay cash into the same works pension?

this does seem like a technicality I need to get around

It's not a technicality. Many of the Govt backed pensions do not accept transfers in.

Using UFPLS to draw the pension and then paying it into another pension is not a solution. Issues with recycling and MPAA potentially.

Silvertabby

What exactly do you mean by 'Government Works Pension Scheme' ?

xylophone

'Government Works Pension Scheme' ?

LGPS? See

https://forums.moneysavingexpert.com/discussion/comment/75412634#Comment_75412634

Albermarle

Although the idea of transferring in the two private pensions looks like a reasonable idea, it looks like it will not be possible or will bring a lot of tax and complications.Probably they will have to remain seperate from the current employers scheme. Although combining the two private pensions into one would normally be straightforward, as long as you would not be losing any minimum income guarantees etc

Silvertabby

“ 'Government Works Pension Scheme' ?

xylophone wrote: »

LGPS? See

https://forums.moneysavingexpert.com/discussion/comment/75412634#Comment_75412634

Good spot. In this case, transfers in - as long as they are at least initiated within the first 12 months of LGPS service - are not limited to other 'Government' schemes.

Either OP asked the wrong person (payroll instead of LGPS administrator) or he/she really is on the 50:50 option of the LGPS (which isn't clear!)

NOTE: LGPS 50:50 doesn't refer to the ratio of employer/employee contributions - it's the member option to pay 50% of normal pension contributions for short periods. In return, they accrue half the normal rate of pension, although other benefits remain unaffected. It was introduced as a means of persuading cash strapped members from opting out altogether (but they still do).

Transfers in can't be processed during a period of 50:50 membership.

hyubh

ChrisK..... wrote: »

I want to transfer two private pensions into my current government works pension scheme
I called my payroll and they said they can't transfer private pensions into the Government Pension Scheme they can only transfer other government pensions in.

Out of interest, can you name the LGPS fund? Most (but not all) LGPS administering authorities allow 'non-Club' transfers in.

PS - if by 'my payroll' you literally mean your employer's payroll, they will be next to useless. Even if you are employed by the organisation that administers the local pension fund (e.g. a county council), you need to contact the pensions team specifically. They will very likely also have their own website (e.g. here's Kent's - https://www.kentpensionfund.co.uk/local-government).

atush

When do you wnt to retire?

Even if you can transfer your pension- if you want toretire early it could be better to keep a dC pension separate to use before scheme retiremant age. As to retire early could see a reduction of 50% or even more.

ChrisK....._3

I contacted my gov works pension, they said they don't transfer private pensions in, only other gov pensions. I said that I could cash them out and transfer the cash, she said no problem because I am allowed to put cash in. That makes it a "technicality". After a conversation with a gov advisor he was suggesting that they should not be differentiating so in going back to them

dunstonh wrote: »

What makes you think you can pay cash into the same works pension?


It's not a technicality. Many of the Govt backed pensions do not accept transfers in.

Using UFPLS to draw the pension and then paying it into another pension is not a solution. Issues with recycling and MPAA potentially.

ChrisK....._3

It is a 50 50 government pension but she did say they will accept top ups in the form of cash so a conversation with a government advisor suggests that they should not be differentiating between transferring in public or private pensions so I'm going to go back to them and see what the problem is

Silvertabby wrote: »

Good spot. In this case, transfers in - as long as they are at least initiated within the first 12 months of LGPS service - are not limited to other 'Government' schemes.

Either OP asked the wrong person (payroll instead of LGPS administrator) or he/she really is on the 50:50 option of the LGPS (which isn't clear!)

NOTE: LGPS 50:50 doesn't refer to the ratio of employer/employee contributions - it's the member option to pay 50% of normal pension contributions for short periods. In return, they accrue half the normal rate of pension, although other benefits remain unaffected. It was introduced as a means of persuading cash strapped members from opting out altogether (but they still do).

Transfers in can't be processed during a period of 50:50 membership.

ChrisK....._3

It's with the Leicester county council

https://www.leicestershire.gov.uk/jobs-and-volunteering/working-for-the-council/local-government-pensions/contacting-the-pension-section

hyubh wrote: »

Out of interest, can you name the LGPS fund? Most (but not all) LGPS administering authorities allow 'non-Club' transfers in.

PS - if by 'my payroll' you literally mean your employer's payroll, they will be next to useless. Even if you are employed by the organisation that administers the local pension fund (e.g. a county council), you need to contact the pensions team specifically. They will very likely also have their own website (e.g. here's Kent's - https://www.kentpensionfund.co.uk/local-government).