LPFA Pension Question

1931modela

I currently pay into a LPFA FS/Care pension administered by the Local Pensions Partnership, I have access to my pension online which has a calculator to work out what the pension would be at any given leaving date you enter.
I am now looking to fully retire and spoke with the above administrators who advised that they could not give an exact amount until I retire, is this the case as if the figure quoted is completely wrong (they said on phone it could go down depending on leaving salary etc ect) then that would affect my decision to retire if it was less then quoted in calculator, but if I resign I cannot guarantee that my employer would allow me to change my mind and remain employed.
Also, I only have to give 1 months' notice, but pension administrators are saying it could take 2-3 months to put pension into payment, if i left after 1 month would the pension be backdated to leaving date or would it be from date it started paying (poss 2-3 months later)

mark55man

Hello @1931modela - I'm sorry your question hasn't had an answer.  My role is to help things along, but I was away on work last week

Often the final amount is not accurately calculated until you take the pension, but the process differs widely between schemes which is why maybe nobody felt qualified to comment - as they are questions you can only really ask the administrator.

I hope someone can help more thoroughly tomorrow

Marcon

1931modela said:

I currently pay into a LPFA FS/Care pension administered by the Local Pensions Partnership, I have access to my pension online which has a calculator to work out what the pension would be at any given leaving date you enter.
I am now looking to fully retire and spoke with the above administrators who advised that they could not give an exact amount until I retire, is this the case as if the figure quoted is completely wrong (they said on phone it could go down depending on leaving salary etc ect) then that would affect my decision to retire if it was less then quoted in calculator, but if I resign I cannot guarantee that my employer would allow me to change my mind and remain employed.

Yes. Until your employer confirms your date of leaving and salary details, they won't have the final figures on which to work out your entitlement. Do you have any reason to believe the calculator is giving incorrect figures, always assuming the information you enter is entirely correct?

1931modela said:

Also, I only have to give 1 months' notice, but pension administrators are saying it could take 2-3 months to put pension into payment, if i left after 1 month would the pension be backdated to leaving date or would it be from date it started paying (poss 2-3 months later)

If you plan to take retirement before the scheme's normal retirement date, do you need the agreement of your employer? If the answer is yes, and they agree, then the pension would be backdated to the agreed pension start date. If you don't need their agreement (perhaps because you have reached the scheme's Normal Retirement Date?) and ask for your pension to be paid from NRD, then it would if necessary be backdated.

Putting a pension into payment is usually down to two things: the speed at which an employer supplies information (if you are still employed and contributing to the scheme, there is almost always a delay until the payroll has been run for the month in which you leave); and the speed at which a would-be pensioner returns forms and supplies information. 

hyubh

1931modela said:

I am now looking to fully retire and spoke with the above administrators who advised that they could not give an exact amount until I retire, is this the case as if the figure quoted is completely wrong (they said on phone it could go down depending on leaving salary etc ect) then that would affect my decision to retire if it was less then quoted in calculator, but if I resign I cannot guarantee that my employer would allow me to change my mind and remain employed.

The LPP calculator can only work on the information provided by your employer to date. So for sure, if that information is duff, the calculated figures will be too. But will figures quoted realistically be 'completely' wrong...? There's a few basic checks you can make yourself to evaluate this (NB - if the estimates themselves don't provide their workings, check your latest annual benefit statement): 

• If you have been part time at any point when an LGPS member, is this reflected in the estimate workings and/or ABS?
• Are the salary figures accurate? Your CARE pension calculation will be based on actual salary, including any overtime; your pensionable pay for final salary benefit purposes will be full time equivalent, and only inclusive of overtime if it is contractual.

Especially given LPP have only recently changed admin software suppliers, and migrating member data isn't a trivial thing (the two systems involved structure data very differently), I'd also be keen to ensure the following, if applicable, are present and correct:

• Have you made any transfers in? If so, check the estimate and/or ABS incorporates this.
• Have you previously divorced and had part of your pension transferred to your ex-spouse? Again, check the estimate and/or ABS incorporates this if so.

That said, one complication the calculator will probably not handle is McCloud. Are you covered by this? Chances are this will be a damp squib even if you are, but it's still something to consider. 

if i left after 1 month would the pension be backdated to leaving date or would it be from date it started paying (poss 2-3 months later)

 Backdated. Any interest due will be per the scheme regulations.