Multiple transfers from LGPS to SIPP

dchi98

I am looking for advice please on transferring my partners LGPS to her SIPP, every time the CETV gets near to £30,000.

As I understand it she can transfer her LGPS easily to her SIPP if the CETV is under 30k. As I also understand she can make additional lump sum payments, up to £8000 each year, into her LGPS and thus enabling the sub £30,000 CETV value to be reached fairly quickly.

Once the transfer has completed I have been advised that she can rejoin the LGPS scheme straight away and start the process again. This would enable us to transfer a large amount in the next five years, at which time she reaches 57 and so can draw on her pension

We both have other DB bank pensions which we have left alone and the aim is to get as much money into her SIPP as possible.

Does this sound like a good or flawed plan?

Thanks in advance.

leosayer

Assuming this is possible (which I doubt) then why is having money is your partner's SIPP better than a DB pension which she can commence at age 57 if she wants?

Silvertabby

If your wife's employer discretions allow this (she will have to check with her employer - not just her LGPS)  there would easily be 6 months between each opt out request and final transfer out.  That's a lot of pension rights she'd be forfeiting.

Marcon

dchi98 said:

I am looking for advice please on transferring my partners LGPS to her SIPP, every time the CETV gets near to £30,000.

As I understand it she can transfer her LGPS easily to her SIPP if the CETV is under 30k. As I also understand she can make additional lump sum payments, up to £8000 each year, into her LGPS and thus enabling the sub £30,000 CETV value to be reached fairly quickly.

Once the transfer has completed I have been advised that she can rejoin the LGPS scheme straight away and start the process again. This would enable us to transfer a large amount in the next five years, at which time she reaches 57 and so can draw on her pension

We both have other DB bank pensions which we have left alone and the aim is to get as much money into her SIPP as possible.

Does this sound like a good or flawed plan?

Thanks in advance.

Sounds absolutely stupid.

Dazed_and_C0nfused

dchi98 said:

I am looking for advice please on transferring my partners LGPS to her SIPP, every time the CETV gets near to £30,000.

As I understand it she can transfer her LGPS easily to her SIPP if the CETV is under 30k. As I also understand she can make additional lump sum payments, up to £8000 each year, into her LGPS and thus enabling the sub £30,000 CETV value to be reached fairly quickly.

Once the transfer has completed I have been advised that she can rejoin the LGPS scheme straight away and start the process again. This would enable us to transfer a large amount in the next five years, at which time she reaches 57 and so can draw on her pension

We both have other DB bank pensions which we have left alone and the aim is to get as much money into her SIPP as possible.

Does this sound like a good or flawed plan?

Thanks in advance.

Does your partner have a view on this?

squirrelpie

dchi98 said:

As I also understand she can make additional lump sum payments, up to £8000 each year, into her LGPS

Why would you want to do this rather than paying the £8000 directly into her SIPP?

Sarahspangles

dchi98 said:

This would enable us to transfer a large amount in the next five years, at which time she reaches 57 and so can draw on her pension

We both have other DB bank pensions which we have left alone and the aim is to get as much money into her SIPP as possible.

As others have said, it’s not a good plan.

However if you’re aiming to generate a pot in a SIPP which will enable her to retire at 57, and bridge the years before DB pensions start, there may be ways to achieve that. Is that the goal you’re aiming for?

I’m doing something like this but I can see that if all my provision was from LGPS/NHS it might not be possible.

Dazed_and_C0nfused

squirrelpie said:

dchi98 said:

As I also understand she can make additional lump sum payments, up to £8000 each year, into her LGPS

Why would you want to do this rather than paying the £8000 directly into her SIPP?

Presumably the op thinks the LGPS pension purchased will generate a CETV that is > £8k.

How likely that is I don't know.

dchi98

Thanks for your replies. 

The thing that got me thinking about this was a recent CETV request which was 7 times what she had paid in so far.

I then thought that if I paid in an additional £4000 into the LGPS a year that would generate a cetv of £28000, which i would transfer out. I have no idea if that logic works!! This would have been more benefical than paying £4000 into a sipp directly.

I did not know that the transfer process would take 6 months or so, so thanks for that. 

Phoenix72

Ignore what is being paid in what ials it generating in terms of an LGPS pension. Whatever the CETV value is it's unlikely to get the same pension in a DC scheme. 

Marcon

dchi98 said:

Thanks for your replies. 

The thing that got me thinking about this was a recent CETV request which was 7 times what she had paid in so far.

I then thought that if I paid in an additional £4000 into the LGPS a year that would generate a cetv of £28000, which i would transfer out. I have no idea if that logic works!! This would have been more benefical than paying £4000 into a sipp directly.

I did not know that the transfer process would take 6 months or so, so thanks for that. 

Light dawns on why you thought it was a good idea! Simple answer: no.

You keep saying 'I' - this is actually your partner's call...