Multiple separate LGPS pensions

water4444

Hi,
I am really hoping someone can offer me advice on my pension situation. I have over four LGPS pensions which are separate from each other across three councils. 

I used to work in the public sector for about a decade. I had an initial LGPS pension (1) with my job for about five years, I then moved to another job with a different council and started a new LGPS pension (2). My previous LGPS pension (1) did not get transferred to the new LGPS pension (2). There was a gap of about seven months between these jobs.

I was in this job for about a year, at which point I left and took another break of about three months before returning to a new job at a different council. With this new job, I started another LGPS pension (3) and was in this job for about six months. I then left this job.

After a seven month break I started another new job, with the council I had originally worked with to start with, however, they opened a new LGPS pension (4) for me and I was paying into that for about a year before I left the public sector. None of the previous pensions were transferred in to this new one. So I now have four LGPS pensions, two at the same council and two at two other councils. Due to ill health around the period of these changes I did not bother at the time to chase any of this.

I now have a private pension and wish to transfer these LGPSs into the private one via a transfer out.  

Am I doing the right thing? I am aware I will lose the benefit that could be had from the value of the pensions rising with inflation. But the total value is way below £30,000. But I can't see any major loss apart from that. I was also confused if I would be able to request from each council a transfer out value or I would have to get them all combined into the newest LGPS pension (4) first?

Regards

Waters

Dox

water4444 said:

I now have a private pension and wish to transfer these LGPSs into the private one via a transfer out.  

Am I doing the right thing? I am aware I will lose the benefit that could be had from the value of the pensions rising with inflation. But the total value is way below £30,000. But I can't see any major loss apart from that. I was also confused if I would be able to request from each council a transfer out value or I would have to get them all combined into the newest LGPS pension (4) first?

Did all your periods of LGPS membership end before 2014? 

Are you doing the right thing? Who knows, without knowing what you are trying to achieve - certainty or flexibility?

How do you know the total value is 'way below £30K' if you've not yet had current transfer value details? 

water4444

Dox said:

water4444 said:

I now have a private pension and wish to transfer these LGPSs into the private one via a transfer out.  

Am I doing the right thing? I am aware I will lose the benefit that could be had from the value of the pensions rising with inflation. But the total value is way below £30,000. But I can't see any major loss apart from that. I was also confused if I would be able to request from each council a transfer out value or I would have to get them all combined into the newest LGPS pension (4) first?

Did all your periods of LGPS membership end before 2014? 

Are you doing the right thing? Who knows, without knowing what you are trying to achieve - certainty or flexibility?

How do you know the total value is 'way below £30K' if you've not yet had current transfer value details? 

All of them finished after April 2014.

I really just want to put all my pensions in one place and get out of the LGPSs.

I am estimating, from what I paid in a month and even if I understand my employer matched my contribution twice it would get nowhere near 30k. i was only a pretty low wage for the majority of the pensions.

Thank you for your reply.

xylophone

Before you can make any decision, you need a CETV for each pension.
https://www.lgpsmember.org/arl/already-left-tvout.php

JoeCrystal

Also, how much pension are you expecting from LGPS? Bear in mind that the CETV for LGPS is not very good compares to other more generous DB pension schemes.

Silvertabby

As you are no longer working in Local Government transferring pensions 1 to 3 into your latest pension is not an option.

If you are determined to go ahead with the transfer, then you will need to obtain separate CETVs (transfer values) and current estimates from each LGPS provider.

Then the fun will begin.  Even though these are separate pensions, they are all LGPS and your gaining scheme may wish to cover their six by insisting that you take appropriate financial advice.

ADD: What makes you think that your pensions are worth less than £30K?  If you have added up your and your employer's contributions, then forget that - the transfer value will be based on your actual pension benefits.  Even on a low salary, it's almost certain that the value of benefits accrued over 10 years will tip you over that limit. 

water4444

JoeCrystal said:

Also, how much pension are you expecting from LGPS? Bear in mind that the CETV for LGPS is not very good compares to other more generous DB pension schemes.

I don't understand the full benefits but there are two figures I have seen in relation to the pension I had for around five years. £6000 and £18000. I assumed all in all I would be able to get about £8000 to put into my private pension.

water4444

Silvertabby said:

As you are no longer working in Local Government transferring pensions 1 to 3 into your latest pension is not an option.

If you are determined to go ahead with the transfer, then you will need to obtain separate CETVs (transfer values) and current estimates from each LGPS provider.

Then the fun will begin.  Even though these are separate pensions, they are all LGPS and your gaining scheme may wish to cover their six by insisting that you take appropriate financial advice.

ADD: What makes you think that your pensions are worth less than £30K?  If you have added up your and your employer's contributions, then forget that - the transfer value will be based on your actual pension benefits.  Even on a low salary, it's almost certain that the value of benefits accrued over 10 years will tip you over that limit. 

Thank you for your advice, I would be surprised if it went over 30k, are you saying I would get the total 30k to put into my new pension? that would be a pleasant surprise if so. But as above, as far as I know the pension is worth about £6000 from a figure I saw. or £18000, but I assumed this was if I got to retirement age.

JoeCrystal

Do you mean an index-linked pension of £6,000? I think you need to look into precisely what you will be getting from the LGPS in term of annuity and lump sum?
For example, a £6000 joint-life index-linked annuity from 65 would cost £217,312

hyubh

You appear to be confusing annual pension amounts at normal retirement age vs. a current figure for funding your likely total pension payments in the future (notwithstanding the fact a CETV in the LGPS arguably low-balls the latter, that is what it represents, and is what the 30K refers to). 

My guess is that the 18K is from an ABS when you were still active, and hypothesises if you had stayed an active member until NRD, at your then-current level of pay. 

water4444

JoeCrystal said:

Do you mean an index-linked pension of £6,000? I think you need to look into precisely what you will be getting from the LGPS in term of annuity and lump sum?
For example, a £6000 joint-life index-linked annuity from 65 would cost £217,312

Going by old pension statements, the main LGPS pension has an annual payment of £500

The second longest pension has a payment of around £350 and I assume the third one would have a similar payment per year.

My whole basis for the choice to transfer the pensions was that I would only lose just over a grand a year if it all went pear shaped. 

I have requested the transfer out price now with the councils so I will see what figure I get!