LGPS options - Transfer in

draiggoch

Just looking for a few perspectives really.
I'm 46 and male just moved jobs to a LA with LGPS that allows transfers in. Current wage about £35,000 so building up about £700 per year in the LGPS. NRA 67/68
I have 2 previous DB pensions which I have requested a transfer in quote for from the LGPS.
1st pension £4300 (50% spouse pension) (current value) annual at 65 most of it with CPI increases limited to 5% - Have been offered £10100 (£3000 spouse pension) annual pension from the LGPS for this. I have accepted this.
2nd pension £5300 (50% spouse pension)  (current value) annual at 65 with RPI increases limited to 5% - Have not received LGPS quote as yet but aware on this year's pension statement that the CETV was about £225,000. So probably quote in region of £20,000 annual pension.
Also have £25,000 in SIPP
£10,000 mixed S&S ISA and easy access savings.
Full new state pension with another 10 years contributions. (Checked my NI contributions on the UK Gov site)

OH 45 with a £2000 DB at 62 and a £20,000 DC which we are steadily increasing. (No workplace pension offered for current job until auto enrolment)
Full new state pension with another 9 years contributions.
Daughter 14 and should have finished college in 7-8 years if she decides to go.

Now to my thoughts.
Option 1
If I work for about 10 years I should have £17000 (minus annual revaluation) annual pension at 67/68 plus state pension. This is without transferring the second DB pension.
Try to transfer the second DB about £220000 to a DC provider along with my current £25,000 DC and use it to bridge 57-67/68.
I know the DB transfer market currently is a difficult one but I was hoping family health conditions would give it a chance of succeeding. Both my father and paternal grandfather passed away in their mid fifties. Paternal Grandmother passed away with same type of cancer but at 85. I had a heart operation whilst still a baby and currently doing ok, no medications or anything but would like to stop working sooner rather than later. I personally do not see me arriving to 68.
Spending wise at current values (mortgage finished in 4 years) I could easily survive on an annual £20,000 pension.
My OH wants to work until her early 60s would be covered if anything happened to me via my remaining DC pension LGPS spousal pension, state pension and her own growing DC pension.
Option 2
I could transfer the second DB pension to the LGPS for probably £20,000 annual pension giving me about £37,000 at NRA or about £25,000 at 60 following actuarial reduction.
This would mean having to increase my current DC pension to about £60,000 plus inflation to cover 57-60.

Any comments, ideas or 3rd options ?
Thanks

JoeCrystal

All I can think is LGPS is amazingly generous with their transfers in!  I seriously need to find a job with the local government in the near future! (Or rather find a short term / part time job just to buy the Local government pension!)

Don't forget that you get uncapprd CPI linked and the fact you can still draw on it as soon you can access it with reduced pension.

draiggoch

It was one of the factors in changing jobs to be honest with you. I took a pay cut to do it.
The strange thing is many people in the LGPS do not realise that the pension is a part of their contracted pay. They complain about low pay but do not realise that a lot of private companies only pay 3-8% towards the pensions where the LGPS employers contribute closer to 20% to guarantee a level of pension when you retire.

JoeCrystal

draiggoch said:

It was one of the factors in changing jobs to be honest with you. I took a pay cut to do it.
The strange thing is many people in the LGPS do not realise that the pension is a part of their contracted pay. They complain about low pay but do not realise that a lot of private companies only pay 3-8% towards the pensions where the LGPS employers contribute closer to 20% to guarantee a level of pension when you retire.

It is actually better than that, it is one of an actually funded pension scheme. In fact, it is so massive that they are well-matched against the liabilities to the point where the contribution from both employers and employees alone plus transfers in and so on are sufficient enough to cover the current pensioners' pensions (overall mind you). I think they had something like £500 million leftovers and that not even taking into account the investment incomes either. I will have to make do with minimum auto-enrollment based on qualifying earnings of 3% from my very generous employer! I am still hoping that one day, I will be able to use my hard-earned pension pot of £100k to transfer into the LGPS and then start again with DC pension from start. But I digress! 

 

Silvertabby

JoeCrystal said:

All I can think is LGPS is amazingly generous with their transfers in!  I seriously need to find a job with the local government in the near future! (Or rather find a short term / part time job just to buy the Local government pension!)

Don't forget that you get uncapprd CPI linked and the fact you can still draw on it as soon you can access it with reduced pension.

When the CARE transfer in factors were announced in 2014 my then colleagues and I couldn't believe how generous the factors were either!

However, the decision to accept a transfer in from a non-club pension scheme (ie, basically all private sector DC and DB schemes) is an employer discretion, and many have indeed opted not to accept them.

So, the trick would not just be to find a LA job, but to find a LA job with an employer who still accepts such transfers in.