LGPS, ill health retirement and pension transfer

Silvertabby

I'm sorry you feel that we have been a bit harsh with you, but sometimes the truth hurts.

Are you willing to post what you have been quoted as Tier 1 benefits plus your latest CETV?  If so we may be able to give you a clearer idea re the possibility of getting a positive transfer out recommendation (extremely unlikely based on what you have said so far).

If it's any consolation, any spouse's benefits will be based on your post enhanced but pre commuted pension, and so may be more than you think.  Plus there is the 10 year guarantee.  ie, if you were to die within 10 years of starting to draw your pension then your husband (or nominated beneficiaries) would get a further tax free lump sum of 10 X your actual pension minus pension already taken.

Obviously, I hope it won't come to that and that your health improves to enable you to enjoy your retirement, funded by your fully index linked (including your GMP elements) LGPS pension.

Kim1965

My wife has just completed this process as a deferred member. Does the 10yr gaurentee period apply to all lgps recpients? 

Silvertabby

Kim1965 said:

My wife has just completed this process as a deferred member. Does the 10yr gaurentee period apply to all lgps recpients? 

Only for those who retired/deferred on or after 1 April 2008.  Pre 2008 leavers have a 5 year guarantee period.

Lemon_dr1zzle

You cannot get enhanced benefits and transfer out! You are wanting your cake and eating it. 

Either take the ill health retirement with the enhancement or opt out and transfer out. 

Kim1965

I have to say our experience with the lgps and ill health process was fairly good. The doctor was very sympathetic we found a contact at the pensions office who was so kind and helpful. The process did take about 4 months I guess. 
 The op is getting good advice but it goes against her pre concieved plans. If paying off the mortgage is important does the lump sum cover this?? 

xylophone

Local Government definitely isn’t the walk in the park that is often peoples perception. 

I have relatives who have worked in Public Service so am aware that such jobs are rarely sinecures.

But  as employees  they are all (or have been)  appreciative of the  generosity of the schemes, not only to themselves but potentially to their dependants.

I'm afraid I don't see where "equity" comes into it.

And I was not being snarky, just trying to look at the facts dispassionately.

xylophone

LGPS is one of the few DB schemes 

I have corrected my post above to Public Service Schemes.

marycanary

ANewBeginning said:

xylophone said:

So it’s not about having my cake and eating it, it’s about equity. My questions are valid and don’t really warrant snarky comments. 

I get a CETV every year, so I can see how it is ‘maturing’. So had done a rough calculation around mortgage redemption, credit balances, helping my 2 grown up kids out a bit etc If I can’t retain my enhanced benefits and transfer out, I think the best way is looking like commenting the maximum and taking a reduced annual sum. However if I die prematurely my husband will only get a small pension, so ultimately the system wins. 

OP I'm a similar age to you and a senior manager in local government. I'm sorry your health has broken down, it really is bad luck. I moved to a job in a smaller council when my health deteriorated so I know how disappointing it is to leave a job you love. I also understand the pressures of working in local government. We spend our working life patching over the cracks in society with increasingly inadequate resources.

I am divorced, so a surviving partner's pension won't be paid when I die. I could complain that is inequitable but it's simply how the scheme works. Similarly, your inability to transfer with enhanced benefits is not inequitable. Some people receive more, some less. On joining the scheme, and now 40 years later, we don't know to which group we'll belong. The system, which after all is only other members, doesn't win or lose if we die early. We all get the benefit we signed up for.

We have paid hundreds of pounds each month into the scheme for decades, in my case 9.9% of my salary present salary, not counting AVCs. The overwhelmingly positive news is that we will benefit from an excellent pension. There is an enormous benefit in having an inflation proof income drop into your bank account each month, particularly if you have health problems or a partner to consider. 

Marcon

ANewBeginning said:

I get a CETV every year, so I can see how it is ‘maturing’. So had done a rough calculation around mortgage redemption, credit balances, helping my 2 grown up kids out a bit etc If I can’t retain my enhanced benefits and transfer out, I think the best way is looking like commenting the maximum and taking a reduced annual sum. However if I die prematurely my husband will only get a small pension, so ultimately the system wins. 

How what is 'maturing' ? CETVs can and do fluctuate (both up and down, albeit public sector CETVS are much more stable than private sector scheme CETVs), so I wonder if you actually understand what you're looking at? In a DB scheme, the important question is how your benefits are building up, albeit that will in turn have an impact on the CETV.

The cost of ill health retirement is huge where a member receives enhanced benefits - you may not realise quite how much. Most people don't because they can't believe it! If you'd be kind enough to quote some figures here, someone will be able to give you a back of fag packet estimate of the massive financial benefit you'd get if ill health retirement is granted, whichever tier you qualify for. Although I completely understand you'd prefer not to be a position where you need ill health retirement...

Neasy

Hi there. When did you join the LGPS?