LGPS - what are the rules about reemployment?

pandora205

I have finally given notice in my LA job after many years, and I'm looking forward to retirement. However, I'm leave a profession that has been a big part of my life for over 30 years and I'm beginning to wonder if I'd like to do some bits and pieces after a while. My manager has already asked if I'd be interested in continuing with a project with which I've been involved.

At the moment I need a break, a time to catch up with the rest of life, travel, spend more time in my hobbies, but what if I did want to work for an LA again? What are the rules about drawing my pension and earning? I would definitely not want to go back into the same role (which is a senior manager job) and wouldn't want to do generic work for the team either.

If it's relevant I'm just over SPA and won't need to work financially as I've a decent LGPS pension + AVCs on which to survive.

Thanks

Marcon

See https://www.lgpsmember.org/arl/already-left-remp.php

pandora205

Thanks Marcon but that doesn't answer how it would be affected. It just says LGPS fund must be informed.

hyubh

pandora205 wrote: »

Thanks Marcon but that doesn't answer how it would be affected. It just says LGPS fund must be informed.

The reason it is vague is because whether to enforce abatement of final salary benefits in payment is an administering authority discretion, rather than a blanket rule applying at the scheme level:

http://lgpsregs.org/timelineregs/LGPS2008Regs/SI20140044/20080239.htm#reg70

Go to the website of the LGPS fund you have a pension with, and look for their discretionary policy document(s); their policy on abatement should be included. If you can't find it, contact them and ask for a copy.

Silvertabby

hyubh beat me to it. Very few LGPS employers apply abatement now, but you will need to check if yours does.

The employers in the LGPS I worked for didn't apply abatement, but the rules regarding only being able to take pension benefits on actual retirement were strictly adhered to.

For example, someone who wanted to take their pension benefits but with the intention of returning in another capacity would be deemed not to be a retiree, and benefits would only be paid if the employer authorised flexible retirement. This could be an option in OP's case as there would be no employer's costs for them to pay.

Retiring, taking pension benefits, having a 6 month break and then deciding to return in a completely new post would have been questioned, but would have been allowed if the employee and employer assured the LGPS that this wasn't the intention when the pensioner retired.

stevc

My wife is taking voluntary redundancy at 58 at end of June will be receiving her Lgps pension and avc,cant be employed by the local council in her old job again until 12 months have passed she has that in writing.

hyubh

stevc wrote: »

My wife is taking voluntary redundancy at 58 at end of June will be receiving her Lgps pension and avc,cant be employed by the local council in her old job again until 12 months have passed she has that in writing.

That will be to do with the employer's rules for above statutory redundancy terms rather than the pension scheme however.

k6chris

An aligned question. When you start as a new LGPS member, you need to build up two years of pension contributions for the LPGS pension to be payable whn you retire, less than two years and your contributions are refunded. If you already have more than two years, but then leave and rejoin, does the two year rule still apply? Could you work for say nine months and have these new comntributions added to your previous pension? Hope that makes sense?

Wentthedaywell?

Have you considered flexible retirement Pandora?.

You can draw your pension and work a couple of days a week. It's the best of both worlds and gives you more time off, more money also continuous employment. You can start a new pension and get the advantage of a couple more years of contributions.

Silvertabby

k6chris wrote: »

An aligned question. When you start as a new LGPS member, you need to build up two years of pension contributions for the LPGS pension to be payable whn you retire, less than two years and your contributions are refunded. If you already have more than two years, but then leave and rejoin, does the two year rule still apply? Could you work for say nine months and have these new comntributions added to your previous pension? Hope that makes sense?

It depends. If your old record is deferred, and the gap between leaving and starting your new job is less than 5 years, then both periods of employment may (subject to final salary pensionable pay) be combined from day 1 of the new job. Then, if you leave within 2 years, your total pension record will be more than the requisite 2 years.

If your records aren't combined - either because they can't be aggregated or the first record is already in payment - then the new post will be set up as a separate record. Then, if you leave with less than 2 years service, the service from the original post will be added as UNaggregated service. This will have zero affect on pension accrued, and it won't carry any previous Rule of 85 protections - it just means that the new record can then be classed as 'pensionable' despite the length of service.

k6chris

Silvertabby wrote: »

It depends. If your old record is deferred, and the gap between leaving and starting your new job is less than 5 years, then both periods of employment may (subject to final salary pensionable pay) be combined from day 1 of the new job. Then, if you leave within 2 years, your total pension record will be more than the requisite 2 years.

If your records aren't combined - either because they can't be aggregated or the first record is already in payment - then the new post will be set up as a separate record. Then, if you leave with less than 2 years service, the service from the original post will be added as UNaggregated service. This will have zero affect on pension accrued, and it won't carry any previous Rule of 85 protections - it just means that the new record can then be classed as 'pensionable' despite the length of service.

Thanks Silvertabby. So in effect, I would get the pensionable benefit of a sub two year contract. Many thanks!