Help re LGPS and Civil Service Bulk Transfer decision
Hi all, this is my first post and I am hoping I can get some advice to help me make a decision re what to do with my pension(s).
Basically, I worked in Local Government from 2000 to 2019, but was then TUPEd across to the Civil Service, but am now about take up a new role and return to Local Government.
When I first moved across to the Civil Service, I was advised I could opt to transfer my LGPS pension across into the Civil Service pension scheme as part of a Bulk transfer exercise, along with my colleagues. The bulk transfer process was on hold for a long while due to the McCloud judgement so I have only now recently received a letter (now that I am about to leave!) outlining the various options available as part of the Bulk Transfer. From reading the letter - I could still take part in the transfer if I wish, I would just need to confirm my decision before my last day with the Civil Service.
If I were to take part in the bulk transfer, apparantly my pre 2008 LGPS service would be transferred to Nuvos (with a critical retirement age of 60 to mirror the 85 year rule of LGPS). My 2008 - 2014 LGPS service would be transferred to Nuvos (normal pension age of 65) - and the CARE element of my LGPS would transfer across to ALPHA. The lump sum payment from my pre 2008 LGPS pension is gone if I move it across to the Civil Service, but this is adjusted in the calculations, so my pension will be slightly higher due to no longer having the lump sum (when I applied the formula for calculating Nuvos benefits vs the formula for calculation LGPS benefits for my pre 2008 service against my current salary, the figures were as follows:
Nuvos = £3225
LGPS = £2572
So it would be around £650 additional pension per year if I forgo the lump sum.
Some additional info:
My salary at the time of leaving LGPS in 2019 was £25,300
My current Civil Service salary is £29,600
My new salary in Local Govt will be £29,400 (but with pay progression, there is the potential for this to increase over the next 5 years to another 5K on top).
I am hoping to retire around age 60 - 62 (or partially retire at least) - to this end, this year I have started paying into a Vanguard Targetted Retirement Fund (£200 per month)
Also, as Alpha and LGPS are both CARE schemes, and if I decided not to take part in the bulk transfer and keep my old LGPS pension where it is - am I right in thinking there is no benefit to leaving it in ALPHA, and it would be better to transfer it across to LGPS also?
If the bulk transfer options letter hadn’t arrived just before I am about to leave the Civil Service - I think I would just have linked my old LGPS pension to my new one (my new salary in Local Govt is 5K higher than it was when I left in 2019). I think I am just wanting to check I am not overlooking any possible advantages to taking part in the Bulk Transfer (if I decide I would rather have a slightly higher pension rather than a lump sum) whilst I am still within the transfer window, and dismissing it out of hand. - Or if there is any pros and cons of transferring/not transferring that I may not be aware of and therefore not considered?
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