Lgps benefit from £155 k transfer in from personal pension

mattysgsg

Hi. Just incase any experts here, but roughly what would a transfer in of £155 k from a personal pension Into the LGPS provide as an annual pension. This is for a male, age 50, normal state retirement age .

Thanks chaps

JoeCrystal

No idea. You will get your answers when you get your quote back, but it is generally assumed that it is rather generous to the people transferring into the LGPS. Looking at the Extra Pension calculator, it may buy you £13,584 annual pension from your SPA. Let us know what the actual quote was—always interesting to see how much a transfer can buy in the LGPS.

mattysgsg

Thanks, I was thinking circa that figure also

andrew_m

That's a pretty good sum! I take it there's something to stop people in their e.g. 60s taking a basic job to get them into the LGPS for a few years and then transferring their personal pension in to get, essentially, a super-charged annuity?

AlanP_2

andrew_m said:

That's a pretty good sum! I take it there's something to stop people in their e.g. 60s taking a basic job to get them into the LGPS for a few years and then transferring their personal pension in to get, essentially, a super-charged annuity?

There are no illegal barriers to employment in local government e.g. age discrimination 

Transfer requests need to be submitted within 12 months of joining normally so if you wanted to transfer your DC pot in a couple of years before retirement there is nothing stopping you getting a LG job and transferring as far as I know.

Amount of pension purchased is likely to vary with age at time of transfer I would have thought as the LGPS will have your DC funds invested for less time if transfer at 60 instead of 50 for example.

JoeCrystal

andrew_m said:

That's a pretty good sum! I take it there's something to stop people in their e.g. 60s taking a basic job to get them into the LGPS for a few years and then transferring their personal pension in to get, essentially, a super-charged annuity?

Well! The employers have every right to deny the transfer, and I believe some councils do not allow the transfer in. So it is a bit hit and miss. It is quite possible to start a job which comes with an LGPS, transfer your pension pot in, and once it has been moved and settled, you can walk away since the minimum amount of times required doesn't apply in case of transfer. It is undoubtedly on my plan to do in the future; especially I may lose my job soon.

AlanP_2

JoeCrystal said:

andrew_m said:

That's a pretty good sum! I take it there's something to stop people in their e.g. 60s taking a basic job to get them into the LGPS for a few years and then transferring their personal pension in to get, essentially, a super-charged annuity?

Well! The employers have every right to deny the transfer, and I believe some councils do not allow the transfer in. So it is a bit hit and miss. It is quite possible to start a job which comes with an LGPS, transfer your pension pot in, and once it has been moved and settled, you can walk away since the minimum amount of times required doesn't apply in case of transfer. It is undoubtedly on my plan to do in the future; especially I may lose my job soon.

Do the employers have the right to deny the transfer or the scheme administrators? Not saying you are wrong but I'm pretty sure individual employers in our local scheme all use the same scheme rules for that aspect.

mattysgsg

There are two angles. 1- transfer in but must be in first 12 months of joining and 2- buy £7100 of annual pension which for me costs £80 k now less tax relief, or £816 pcm for 10 years. You can do both. The figures are what you get at 67/68 in today's money. CPI inflation. Can take early but with a reduction, eg 29% reduction if taken at 60 or there abouts. That's it in a nutshell. 

Silvertabby

AlanP_2 said:

JoeCrystal said:

andrew_m said:

That's a pretty good sum! I take it there's something to stop people in their e.g. 60s taking a basic job to get them into the LGPS for a few years and then transferring their personal pension in to get, essentially, a super-charged annuity?

Well! The employers have every right to deny the transfer, and I believe some councils do not allow the transfer in. So it is a bit hit and miss. It is quite possible to start a job which comes with an LGPS, transfer your pension pot in, and once it has been moved and settled, you can walk away since the minimum amount of times required doesn't apply in case of transfer. It is undoubtedly on my plan to do in the future; especially I may lose my job soon.

Do the employers have the right to deny the transfer or the scheme administrators? Not saying you are wrong but I'm pretty sure individual employers in our local scheme all use the same scheme rules for that aspect.

Not all LGPS funds allow transfers in from other than club schemes for this very reason - the extremely generous ( in pensionspeak) transfer factors to CARE.  At the end of the day, it's the funds who have to pay the additional pension, not the employers.  

When the new factors were introduced along with the change to CARE my (then) colleagues and I did think they were too generous to be affordable.  In the absence of changes to the factors by GAD, stopping transfers in was inevitable.  

andrew_m

Thanks for the comment. That sounds interesting. I've never really sat down to work out why they can provide such a generous scheme where as most private employers expect you to be wow-ed by a few percent contribution to the whims of the money markets !

J76W

Hi, if it helps I transferred in approx £172k earlier this year, this increased my pension by £14,600 per year. I am a 46 year old male. Based on my figures I would estimate your CETV and age would buy you just under £13k.