LGPS - Boosting My Pension options

MX5huggy

Yes. So my Salary is £32000, my LGPS had 1/49th so £653 added to it (plus the CPI from previous years). I sacrificed £800 per month to AVC so that ended with £9600 added to it. But my Gross Pay for tax as shown on my P60 is £22400. 

Because the £9600 was Sacrificed I didn’t pay 20% tax, 12% NI (now 13.25%) or 9% student loan repayments on it saving £3936 or to put it another way I could have £9600 in my pension or £5664 in my pocket to spend. 

jamjar92

That is correct, under CARE you will get 1/49 of your total earnings over the year. This is done so the LGPS pension does not loose out and you do not loose out on the SS amount paid to your AVC.

OldBeanz

Dazed_and_C0nfused said:

OldBeanz said:

What you might like to think about is giving your marriage allowance to your husband increasing the tax you pay then paying as much of this taxable money into an avc. This increases your husband's income and maximises your contributions into your avc most of, if not all, you will be able to take as a tax free lump sum when you take your main pension. Tax sheltered on the way in and out.

The problem with that is for most people in receipt of Marriage Allowance it's because their spouse doesn't need it.

There are exceptions and the spouse could be earning £50k and still be eligible to have applied.  But it's much much less likely.

Yes but there have been a number of folk on here who have been paid just over the tax threshold and wanted to increase their AVCs, so as long as their other half was a BR tax payer giving them the marriage allowance allowed the AVC contribution to be increased so gains all round. It is counter intuitive and not applicable here but we have done it for 10 years. It is particularly relevant to LGPS staff many of whom work part time and are paid either just over or under the tax threshold thus not maximising the tax benefits.

LoopySnooker

Thanks again everyone. Managed to find a good document online regarding SS Shared Cost AVCs and it explains it pretty well so thought I'd post the link in case it helps anyone else:

https://lgpslibrary.org/assets/gas/ew/213AppB.pdf

LoopySnooker

Sorry for the bump but thought as OP it was better not to start a brand new thread. What is normally the situation if you rejoin the same LGPS, say 3 years after leaving, can you transfer in a SIPP again or do you only get one transfer in (within first 12 months of joining originally) ?

I know I'd probably need to confirm directly with the actual LGPS but wondered if anyone happened to know ?

Many thanks again in advance.

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/81911560#Comment_81911560

When you rejoined, did you amalgamate (join) your two LGPS records, or did you leave your first pension deferred and start a new record?

If you joined your two records together then it's very unlikely that you would be able to transfer a SIPP in. Even if you didn't join transfers in of DC pensions (such as your SIPP) are at your employer's discretion, so you would need to check with your current LGPS provider.

LoopySnooker

https://forums.moneysavingexpert.com/discussion/comment/81911592#Comment_81911592

As yet I have not actually rejoined, I thought it best to check first as it will definitely be a consideration when deciding to move jobs.

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/81911601#Comment_81911601

Does your old post have a substantial amount of pre 2014 service? Would your new post be on a higher salary than your old? If so, don't lightly dismiss the benefits of merging your records (meaning your pre 2014 benefits would be recalculated, using your new final salary pensionable pay) even if it means not being able to transfer in your SIPP.

LoopySnooker

https://forums.moneysavingexpert.com/discussion/comment/81911673#Comment_81911673

No service pre 2014, just a few years based on CARE. Salary is likely to be quite similar. Thanks again.

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/81911704#Comment_81911704

In that case, amalgamation would be automatic, unless you specifically ask to keep your records separate. But the latter still wouldn't guarantee that you'd be able to transfer in your SIPP.