LGPS Transfer In - Factors

Spicy21

Hi,

Hoping someone can help!

I have been given a transfer in figure for a private pension moving to LGPS but I wanted to check the factor used as it’s different from expected. I am 48 years old and also want to have a Surviving Partner’s Pension. Would it be 13.64 ( from column B ) or 15.86 ( column B plus C )? 

My SPA is currently 67 but will likely rise to 68 as per expected government initiatives - SPA alters which factor is used and if 68 used I’d end up with more annual pension. I’m guessing that it’s tough luck if 67 was used to calculate the factor and my pension age changes?

Thank you.

MX5huggy

@Silvertabby is our LGPS expert but I understood that the cost of transferring into LGPS is not published and a complex calculation. Where have you got these factors from? 

Then you can’t choose not to have spousal pension so again this suggests you are miss understanding what these numbers are for. 

Silvertabby

It's not just the listed factors that come into play - it's a very complex calculation.  Plus the increase to 68 hasn't yet been fully rubber stamped, so your figures will almost certainly be based on a NRA of 67.

What have you been quoted, and why do you think it's wrong?

jsinc

Actuarial info is here: https://lgpsregs.org/schemeregs/actguidance.php

Example using factors displayed above and methodology from 24/01/24 'Guidance' (p.37):

https://lgpslibrary.org/assets/actgui/ew/Transfers20240124.pdf

For £100k private pension CETV = 100000/(13.64 + (49/160 * 2.22)) = £6,983 p/a

I can't vouch for any accuracy in your case, but for my factors and transfer-in it was spot on.

Spicy21

jsinc said:

Actuarial info is here: https://lgpsregs.org/schemeregs/actguidance.php

Example using factors displayed above and methodology from 24/01/24 'Guidance' (p.37):

https://lgpslibrary.org/assets/actgui/ew/Transfers20240124.pdf

For £100k private pension CETV = 100000/(13.64 + (49/160 * 2.22)) = £6,983 p/a

I can't vouch for any accuracy in your case, but for my factors and transfer-in it was spot on.

This works out to exactly what they have offered! Thank you. I couldn’t work out how they’d calculated the amount at all. 

Thanks to everyone else for their responses.