Can I claim LGPS pension then work for NHS and continue with their pension?

vonvonvon

As the title suggests really; I'm 57, a single parent and work for local government (since 2005) but I have just secured a new job in the NHS.

I'm exploring my options with regards to leaving my current job, bearing in mind that as a cancer survivor already, I might not get to enjoy a 'retirement' in old age.

I would like to get my monthly outgoings reduced as I have home improvement loan plus current mortgage etc and one dependant teenage child.

Could I take early retirement from LGPS and maximise the lump sum I am entitled to (to pay off home improvement loan), then start working for NHS and pay into their pension scheme?

Thanks ahead of any advice given.

xylophone

https://www.lgpsmember.org/tol/thinking-leaving-when.php

Many people draw their pension, take another job and join the new employer's pension scheme.

Apodemus

While the answer to your question is most likely “yes”, you might want to do the sums on your likely income and needs over the next 15-20 years. If you draw your LGPS pension early, at least some of it will suffer a reduction. You are unlikely to build up much of a pension in the NHS scheme in the few years that you are likely to want to continue working, so maximising the LGPS lump-sum at the cost of future income may leave you short in the years to come. Only you can do all the sums required, but i’d be wary of making decisions now which reduce your room for manoeuvre in a few years time when you may want to retire but may not have sufficient income to do so.

hyubh

vonvonvon wrote: »

Could I take early retirement from LGPS and maximise the lump sum I am entitled to (to pay off home improvement loan), then start working for NHS and pay into their pension scheme?

What Apodemus said - there's no problem at all with drawing an LGPS pension while accruing an NHS one, however that plan will suffer actuarial reductions (albeit at different rates for difference tranches of benefit) and a poor commutation rate for converting pension into lump sum (12/1).

Additionally, if the whole-time equivalent pay in the NHS job is higher than your current one, then you would be missing out on choosing a Club transfer that would magically increase the value of the final salary part of your pension (i.e. your pre-April 08 service).

zagubov

Might be time to ave a chat with your union rep, as they may have experience about this. You may find that people can't offer advice but only info, so can answer factual questions, especially yes/no ones.

People who have made the same job switch may also be good sources of information.

Were you due to collect your pension at 60 or 65/66? (That will affect the reduction you'll get for taking it early). Clearly the size of the actuarial reduction is something to consider).

I did something similar to what you're doing and it worked out very well for me, however, I'm in a different part of the public sector, so I don't know the precise details of the pensions you're switching between.

Be aware that if you do choose your lump sum when you claim your pension, it might well be irreversible/unchangeable once you click "submit" (It was in my case, anyway).

hyubh

zagubov wrote: »

Were you due to collect your pension at 60 or 65/66? (That will affect the reduction you'll get for taking it early). Clearly the size of the actuarial reduction is something to consider).

Different bits of the OP's LGPS pension will carry an actuarial reduction from different ages. Joined before the 85 year rule was removed, so pre-April 08 service is potentially without one from 60, then April 08 to March 14 service without from 65, then April 14 onwards without from SPA.

I did something similar to what you're doing and it worked out very well for me, however, I'm in a different part of the public sector, so I don't know the precise details of the pensions you're switching between.

If the OP did have a Club transfer in, it would buy a credit in NHS 2008, which is very, very similar to LGPS 2008 (1/60th final salary, NRA 65, 12/1 commutation rate).