Moving from LGPS to TPS pension scheme

glm198

I am currently in the LGPS pension scheme and am on the professional service pay scale. My workplace has proposed a voluntary move to the academic pay scale, which means changing to the TPS pension scheme. As far as I can work out, both are defined benefit pensions. 

If I stay in LGPS, my monthly employee contribution will be lower than TPS employee contributions, yet the accrual rate is much better - 1/49th with LGPS and 1/57th with TPS. My knowledge of pensions is minimal but it seems obvious that I would be better off staying with LGPS or are there other factors at play that I have missed?

Just to add, there is no benefit to changing to the academic pay scale for me as my spinal point will remain the same and my contract will be the same.

Dazed_and_C0nfused

TPS looks to have a more generous (in service) revaluation rate for there CARE scheme.

https://www.teacherspensions.co.uk/news/public-news/2023/02/pensions-increase-and-career-average-revaluation

hyubh

glm198 said:

I am currently in the LGPS pension scheme and am on the professional service pay scale. My workplace has proposed a voluntary move to the academic pay scale, which means changing to the TPS pension scheme. As far as I can work out, both are defined benefit pensions. 

If I stay in LGPS, my monthly employee contribution will be lower than TPS employee contributions, yet the accrual rate is much better - 1/49th with LGPS and 1/57th with TPS. My knowledge of pensions is minimal but it seems obvious that I would be better off staying with LGPS or are there other factors at play that I have missed?

As D&C says, Teachers has a better revaluation rate that will even things out and potentially be a better deal if you stay a while (CPI+1.6% vs. straight CPI). That said, any existing LGPS accrual will stay with its current revaluation rate, even if you were to (a) join the TPS and (b) transfer over your LGPS pension. So depending on your age, remaining in the LGPS might still be a better idea.

LHW99

Are the NRA's the same in both? If you decided to retire early, there will be an actuarial reduction in both schemes, but if one has an earlier NRA then, at the same age, it would be reduced by fewer years (although depending on the calculations that may or may not result in a smaller reduction).

Silvertabby

Do you have much in the way of R85 protections in the LGPS?  ie, joined before 1 October 2006 with substantial pre 2008 service.  

Albermarle

 My knowledge of pensions is minimal

Pension provision is an important part of any job, but especially in the public sector. These Defined Benefit schemes are expensive to fund,and are effectively like a 25% addition to your normal salary.

Also the rules can be quite complicated, especially as they get changed from time to time.

So probably a good time to improve your minimal knowledge .