Numerous Pension? What to do!

betty02

Just after a bit of advice, I worked in a school from 16-25 and paid into a pension, I wasn't on great wage but paid in none the less, I left so presume this got frozen? Then went to a secondary workpalce signed up to their pension scheme and paid into that for 18 months, and moved jobs again, and then paid into my current for about 2 years now.


I was just wondering what I do with all my previous? Can I transfer my paid in pot to my current and move it with me? Am I best to stop my current and pay into the one I contributed in for 9 years? How will that all work with employer contributions?


It's all a bit confusing for me, just not sure what to do with them all. Any sort of advice would be great!


Thanks
Simon

Silvertabby

Is your first pension with the LGPS? If so, it isn't frozen - it's deferred, and so has increased in line with inflation since you left that job.

You can't add to a deferred LGPS pension. And as it is a final salary scheme (assuming you left before 2016) then transferring it to your current pension may not be the best thing to do.

Are you likely to return to Local Government in the future?

betty02

I am pretty sure it is/will be a LGPS, not too clued up on the terminology in all honesty! I left before 2016 yeah (Sept 2015).


May I ask why it may not be the best thing to do? Is it the fact it will mature until retirement age more now and be best left? I highly doubt I will go back unless I take a career u-turn in all honesty!

Silvertabby

betty02 wrote: »

I am pretty sure it is/will be a LGPS, not too clued up on the terminology in all honesty! I left before 2016 yeah (Sept 2015).

May I ask why it may not be the best thing to do? Is it the fact it will mature until retirement age more now and be best left? I highly doubt I will go back unless I take a career u-turn in all honesty!

If you leave this pension alone, it is guaranteed to grow each year in line with inflation. There are no admin charges, and it won't/can't reduce even if the stock market crashes. That's what is meant by a gold-plated public sector final salary pension - it's not the actual amount of money that is 'gold-plated' but the safeguards offered.

Yes, unlike most other public sector schemes, you may transfer your LGPS benefits into another pension plan, but :

You will have to obtain (and pay for) specialist IFA advice. Not all would be happy to recommend a transfer out from a DB scheme such as the LGPS, and even those who are will charge you £Ks due to (their) risks involved.

The CETV (transfer value) factors are set by GAD and are age sensitive. These factors are not particularly attractive.

On the plus side, if you leave your pension with the LGPS then all that is required of you is that you keep them updated with any changes of address. As you left before 2016 then your pension is payable in full from age 65, regardless of your State pension age and regardless of the fact that you may still be working. You could, if you wished, start to draw this pension from age 55 - but note that it would be subject to quite hefty reductions for early payment.

ADD: Have you completed a Death Grant nomination form? If not, then down-load one from your LGPS website.

Albermarle

Apart from the LGPS pension then >
If you have a current workplace pension which you and your employer are paying into , then normally best to leave it like that . Your employer will probably not want to make contributions to another pension and probably there is nothing wrong with your current workplace pension anyway.
If between your current job and the LGPS related job , you have also another small pension pot , then probably not a bad idea to transfer it into your current workplace pension, although you would have to supply some more details about it to be sure .