LGPS Transfer In Calculation

hobo_baggins

I have recently joined the LGPS and am in the process of getting a transfer quote for a DB Pension I had from the private sector (I am 50).

Does anyone know if the calculation used for transfers in is the same as the APC calculator on the LGPS website? 

I have been given a CETV of £108,500 by the previous pension provider which is coming out of the APC calculator as £9,500 per annum at 67 (the private DB is £3,850 at 65).  

hobo_baggins

Just to add, I know there is a limit on the amount of pension you can buy through the APC process, I have made an assumption that this limit does not apply to transfers in (I may be wrong!).

MX5huggy

I don’t think it is. Because no one has ever said look at the APC calculator as a guide. Each LGPS (because it’s not really one scheme it’s I think 99 schemes) can have different rules on transfers in, they can refuse if it’s to expensive for the scheme.

Just get the numbers, and compare which is fairly easy. There’s factors to work out the value at 65 taking it 2 years early (9.9%) and it rises with CPI with no cap. https://www.lgpsmember.org/your-pension/planning/taking-your-pension/

draiggoch

If you make a search of previous LGPS Transfer In threads there is a a file that was shared that showed how the calculations are made. Dependant on gender, age, possible GMP elements.
The result was spot on when I used it as an indicator. 

Silvertabby

No, different factors and calculations for transfers in.  That said, the factors are very generous and - based on your age - you should still be pleasantly surprised.

As MX says, not all LGPS employers allow transfers in, but sounds like that is not the case here.  Transfer quotes are time sensitive, so you shouldn't have to wait too long for your figures.

Note that the pension figure supplied will be from SPA.  You can take your pension before then (currently 55) but the transferred in pension will be reduced for early payment like your main scheme benefits.

jsinc

https://www.lgpsregs.org/schemeregs/actguidance.php - Transfers - individual incoming and outgoing - Check "Guidance" and "Factor Spreadsheet" for the figures/formula that apply to you.

Silvertabby has outlined previously that the exact calculation can be more complicated than the examples given. But from similar queries over the years it seems to provide a decent estimate.

hobo_baggins

Many thanks for all your responses and information links.