Deferred Local Authority Pension - New Fixed Term Contract

KayBee

I have a small deferred pension & AVC from my previous 15 year local authority employment that ended in 2011, which is payable in 10 years. I have recently been offered a 6 month, 22 hour/week, fixed-term contract with the same authority and wondered if I should enrol back into the pension scheme for the few months I will be there.

Thank you for any advice.

Silvertabby

Why not - you'll get a little pension at the end of it, more if your contract is extended.

You will be asked if you want to combine your pension records.  As there is a gap of more than 5 years between your deferred record and your new membership, your old record would be used to buy CARE pension.  You would lose your final salary link, and your Rule of 85 protections so tread carefully.

Wentthedaywell?

An older colleague started on a short contract, so she never bothered to take out a pension. She ended up staying for 10 years and missed out on all that pension! Definitely worth taking it out.

AnotherJoe

Silvertabby said:

Why not - you'll get a little pension at the end of it, more if your contract is extended.

You will be asked if you want to combine your pension records.  As there is a gap of more than 5 years between your deferred record and your new membership, your old record would be used to buy CARE pension.  You would lose your final salary link, and your Rule of 85 protections so tread carefully.

So to sumMarise the OP should say "yes" to enrolling in pension but "no" to combining ? 

Silvertabby

AnotherJoe said:

Silvertabby said:

Why not - you'll get a little pension at the end of it, more if your contract is extended.

You will be asked if you want to combine your pension records.  As there is a gap of more than 5 years between your deferred record and your new membership, your old record would be used to buy CARE pension.  You would lose your final salary link, and your Rule of 85 protections so tread carefully.

So to sumMarise the OP should say "yes" to enrolling in pension but "no" to combining ? 

Yes to joining, not necessarily no to combining.  It depends on how much CARE pension the old benefits would buy, and when OP intends to retire/ take their LGPS benefits.

The factors used in the calculation of CARE purchase are very generous, and if OP decides to leave their LGPS benefits deferred until SPA then that may be the better option.

On the other hand, if left separate, most of OP's benefits are pre 2008 and so could be taken from age 60 with a small reduction for early payment. Hence my 'tread carefully' comment.

So many variables and 'what ifs'......

KayBee

Thank you for your comments. I have been contacted by the pension department about my deferred pension. I’m hoping they will send me details of my options.