Merging deferred local government pension to new one

Silvertabby

RACHAEL222 wrote: »

Thank you. One final question if I may. If you were in this position would you merge them? Will he keep his protection for 85 year rule if he merged them. Thank you

We're not allowed to advise on here, just clarify.

He will keep his R85 protections if his records are combined - but this will still only be in respect of his pre 2008 service. If he combines, he won't be able to access this part of pension from 60 - only when he actually retires.

If he doesn't combine, then he would be able to take this pension from 60 (in theory from 55 but then would lose the benefits of his R85 protections) even if he is still working. There would be a little early payment reduction, but only in respect of his service from 2008 to 2010.

The big question is the difference between his new salary and his 2010 salary plus cost of living increases. If the new salary is substantially higher, then the final salary link for his pre 2014 service will boost his overall pension.

Of course, this may all be academic if his employer takes the stance that the decision to to keep his records separate in 2012 can't be rescinded. Has he asked if combining is an option?

RACHAEL222

Thank you so much for all that information. He has asked but not got an answer yet. I believe that if he combines, he would be in a better position if he were to retire early on health grounds or be made redundant as they will include rejoined pension. Hopefully I shall know more from him in the next couple of days. Thank you so much

RACHAEL222

Thank you so much to all of you for all of your help in providing the facts. He has been told he can rejoin So I think he shall do this.

Fubbly

RACHAEL222 wrote: »

Thank you so much to all of you for all of your help in providing the facts. He has been told he can rejoin So I think he shall do this.

It could well be the correct decision but before confirming, do make sure that you both understand the potential early additional benefits that would be available via the rule of 85 if not merged - particularly if your husband plans to work to 65.

Silvertabby

Fubbly wrote: »

It could well be the correct decision but before confirming, do make sure that you both understand the potential early additional benefits that would be available via the rule of 85 if not merged - particularly if your husband plans to work to 65.

Rule of 85 will apply to pre 2008 service, whatever OP's husband does

Fubbly

Silvertabby wrote: »

Rule of 85 will apply to pre 2008 service, whatever OP's husband does

Yes, but if merged and he doesnt leave before age 65 then aren't they effectively wasted ?

Silvertabby

Fubbly wrote: »

Yes, but if merged and he doesnt leave before age 65 then aren't they effectively wasted ?

Impossible to know. Yes, I see what you mean if he combines and then doesn't leave until 65/SPA - but then he wouldn't actually need R85, rather than wasting it.

In the meantime, if his new salary is substantially more than his salary in 2010 (with cost of living increases) then combining will mean that all of his pre 2014 service will be re-calculated using the new salary.

Plus, as OP says, if he leaves before 65 on redundancy or ill health terms then the combined records could well give a better result/

If I could have chosen one piece of equipment to help me in my job as a LGPS administrator it would have been a crystal ball !

Fubbly

Impossible to know. Yes, I see what you mean if he combines and then doesn't leave until 65/SPA - but then he wouldn't actually need R85, rather than wasting it.

Perhaps waste is the wrong word - but if the OP 's husband worked between the ages of 60 and 65 without combining they could expect 5 years worth of pre 2008 pension they would miss out on if combining - not insignifant with 21 years service. I know this has to be compared and offset against the many benefits of combining but just wanted the OP to ensure her husband understood the full picture before signing.

In the meantime, if his new salary is substantially more than his salary in 2010 (with cost of living increases) then combining will mean that all of his pre 2014 service will be re-calculated using the new salary.

Yes, and of course he may get further promotions in the years before leaving