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Whether to retain LGPS deferred benefits or combine with current service?

ChesterGeorge
Posts: 4 Newbie

Hi, I’m wondering if anyone can help me please?
I’ve received an email from my LGPS provider asking if I’d like to retain my deferred pension benefits or combine them with my present job.
I’m not financially minded and can’t work out what’s best. I’m 55 years old, female and am not intending to retire until 67 years old.
I earned more in my previous job and am entitled to a lump sum retirement grant (only optional in my current scheme). The email says that my pensionable pay (current value) of my previous job is £33,530 whereas my current salary is £17,600 and not likely to rise (teaching assistant) Plus there was a 10 year break in service between jobs, raising a family.
Thank you for any guidance you can offer me.
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Comments
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Look into Rule of 85 protection for your pre-2008 pension, which will let you retire at age 55 with an actuarial reduction of about 20% (5 years at 4%), or retire at age 60 with no actuarial reduction. Your membership of the scheme still runs even if your pension was deferred, so still counts towards meeting the R85 criteria.
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Your previous service pension will be final-salary related, so it would not be in your interest to combine.
Your current service pension is CARE (career average), so a better deal for those, like yourself, on a lower salary.1 -
thank you very much, that’s very helpful, I appreciate your time and advice 😊
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As the others have said, keeping your records separate means that you keep the final salary aspect and R85 protections of your earlier benefits, which will be payable in full from age 60.
However, if you were to retire on ill health grounds or be made redundant, then you may have been better off combining. It's real crystal ball stuff, I'm afraid - and once you have made your decision you can't revisit that if your circumstances change.2 -
Thank you very much, that’s really helpful, thank you for taking the time and trouble to offer advice, I appreciate it 😊2
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ChesterGeorge said:Thank you very much, that’s really helpful, thank you for taking the time and trouble to offer advice, I appreciate it 😊1
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Okay, thank you, I’ll look into that, thank you very much for your suggestion 😊0
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