Advice please LGPS vs ASAR for teachers

MissHoshiGirl

I am a teacher of 57 years taking early retirement but will continue working part time. Is it best to opt out of the LGPS of continue and receive Additional Service After Retirement (ASAR)? Any help much appreciated.

MX5huggy

ASAR you need to do at least 1 year to get any benefits, LGPS you need 2 years. 

LGPS. Accrual rate is better 1/49th vs 1/57th but revaluation is better on TPS being CPI + 1.6% LGPS is only CPI but this is not important for short service. 

LGPS employee contributions cost seem to be a little lower than TPS  but both have many different rates for different salaries so check for your specific salary.

On balance I would go LGPS but maybe I’m biased as a LGPS member.

not checked the dependents pension on either scheme that might be different? 

MissHoshiGirl

Thank you!

hyubh

MissHoshiGirl said:

I am a teacher of 57 years taking early retirement but will continue working part time. Is it best to opt out of the LGPS of continue and receive Additional Service After Retirement (ASAR)? Any help much appreciated.

How do you have the choice of LGPS and TPS when the rules of the former expressly disallow it...?

MissHoshiGirl

I think I mean to continue to pay pension and get ASAR annuity after a year or better to opt out of paying any more into my pension?

hyubh

MissHoshiGirl said:

I think I mean to continue to pay pension and get ASAR annuity after a year or better to opt out of paying any more into my pension?

I'll be honest, I'm still unclear - you either are, or are expecting to become, a part time teacher eligible for the LGPS in that role (as opposed to some other job)...?

zagubov

hyubh said:

MissHoshiGirl said:

I think I mean to continue to pay pension and get ASAR annuity after a year or better to opt out of paying any more into my pension?

I'll be honest, I'm still unclear - you either are, or are expecting to become, a part time teacher eligible for the LGPS in that role (as opposed to some other job)...?

Yes I’m also unsure how that can happen. 

I retired from teaching and returned afterwards (have always been with the Teachers Pension Service). If you want to return to work after collecting your pension, there are many things you need  to consider.

If you retire before your Normal Pension Age (like I did) your pension will be permanently adjusted downwards to compensate for the longer time you’ll be receiving it (they call it actuarial adjustment and it’s perfectly fair).. 

If your combined pension + new salary mean you are earning more than before retirement, your pension may be reduced (abated) to correct this. I don’t think you’ll see that money again.

There’s a lot of good videos on the internet summarising the retirement options.

You might want to investigate how Phased retirement works. It involves collecting up to 75% of your pension if you drop at least 20% of your workload. There’s a limit to how many phases you can take

Alternatively you can retire early completely, get your actuarially reduced pension and return to work but I think there's a lot of paperwork and yourun the risk of having  your pension abated.

There’s a weird loophole where if you retire completely and return to work after being retired for just one full day, your pension is never abated and your paperwork is massively reduced. It’s called the “one-day rule”.

If you’re somehow with the LGPS, you may have different choices. 

I wish you all the best . Retiring early and working part-time was, for me, the best way to retire.

IAMIAM

zagubov said:

hyubh said:

MissHoshiGirl said:

I think I mean to continue to pay pension and get ASAR annuity after a year or better to opt out of paying any more into my pension?

I'll be honest, I'm still unclear - you either are, or are expecting to become, a part time teacher eligible for the LGPS in that role (as opposed to some other job)...?

Yes I’m also unsure how that can happen. 

I retired from teaching and returned afterwards (have always been with the Teachers Pension Service). If you want to return to work after collecting your pension, there are many things you need  to consider.

If you retire before your Normal Pension Age (like I did) your pension will be permanently adjusted downwards to compensate for the longer time you’ll be receiving it (they call it actuarial adjustment and it’s perfectly fair).. 

If your combined pension + new salary mean you are earning more than before retirement, your pension may be reduced (abated) to correct this. I don’t think you’ll see that money again.

There’s a lot of good videos on the internet summarising the retirement options.

You might want to investigate how Phased retirement works. It involves collecting up to 75% of your pension if you drop at least 20% of your workload. There’s a limit to how many phases you can take

Alternatively you can retire completely, get your actuarially reduced pension and return to work but I think there's a lot of paperwork and yourun the risk of having  your pension abated.

There’s a weird loophole where if you retire completely and return to work after being retired for just one full day, your pension is never abated and your paperwork is massively reduced. It’s called the “one-day rule”.

If you’re somehow with the LGPS, you may have different choices. 

I wish you all the best . Retiring early and working part-time was, for me, the best way to retire.

Isn't this just calculated once at claim point and then your pension income will continually increase every year with CPI?

What if you retire from teaching, claim your teachers pension and then go and work for Tesco part time?

hyubh

IAMIAM said:

zagubov said:

hyubh said:

MissHoshiGirl said:

I think I mean to continue to pay pension and get ASAR annuity after a year or better to opt out of paying any more into my pension?

I'll be honest, I'm still unclear - you either are, or are expecting to become, a part time teacher eligible for the LGPS in that role (as opposed to some other job)...?

Yes I’m also unsure how that can happen. 

I retired from teaching and returned afterwards (have always been with the Teachers Pension Service). If you want to return to work after collecting your pension, there are many things you need  to consider.

If you retire before your Normal Pension Age (like I did) your pension will be permanently adjusted downwards to compensate for the longer time you’ll be receiving it (they call it actuarial adjustment and it’s perfectly fair).. 

If your combined pension + new salary mean you are earning more than before retirement, your pension may be reduced (abated) to correct this. I don’t think you’ll see that money again.

There’s a lot of good videos on the internet summarising the retirement options.

You might want to investigate how Phased retirement works. It involves collecting up to 75% of your pension if you drop at least 20% of your workload. There’s a limit to how many phases you can take

Alternatively you can retire completely, get your actuarially reduced pension and return to work but I think there's a lot of paperwork and yourun the risk of having  your pension abated.

There’s a weird loophole where if you retire completely and return to work after being retired for just one full day, your pension is never abated and your paperwork is massively reduced. It’s called the “one-day rule”.

If you’re somehow with the LGPS, you may have different choices. 

I wish you all the best . Retiring early and working part-time was, for me, the best way to retire.

Isn't this just calculated once at claim point and then your pension income will continually increase every year with CPI?

What if you retire from teaching, claim your teachers pension and then go and work for Tesco part time?

Abatement (affects final salary pension only) concerns re-employment as a teacher after NPA. 

zagubov

hyubh said:

IAMIAM said:

zagubov said:

hyubh said:

MissHoshiGirl said:

I think I mean to continue to pay pension and get ASAR annuity after a year or better to opt out of paying any more into my pension?

I'll be honest, I'm still unclear - you either are, or are expecting to become, a part time teacher eligible for the LGPS in that role (as opposed to some other job)...?

Yes I’m also unsure how that can happen. 

I retired from teaching and returned afterwards (have always been with the Teachers Pension Service). If you want to return to work after collecting your pension, there are many things you need  to consider.

If you retire before your Normal Pension Age (like I did) your pension will be permanently adjusted downwards to compensate for the longer time you’ll be receiving it (they call it actuarial adjustment and it’s perfectly fair).. 

If your combined pension + new salary mean you are earning more than before retirement, your pension may be reduced (abated) to correct this. I don’t think you’ll see that money again.

There’s a lot of good videos on the internet summarising the retirement options.

You might want to investigate how Phased retirement works. It involves collecting up to 75% of your pension if you drop at least 20% of your workload. There’s a limit to how many phases you can take

Alternatively you can retire completely, get your actuarially reduced pension and return to work but I think there's a lot of paperwork and yourun the risk of having  your pension abated.

There’s a weird loophole where if you retire completely and return to work after being retired for just one full day, your pension is never abated and your paperwork is massively reduced. It’s called the “one-day rule”.

If you’re somehow with the LGPS, you may have different choices. 

I wish you all the best . Retiring early and working part-time was, for me, the best way to retire.

Isn't this just calculated once at claim point and then your pension income will continually increase every year with CPI?

What if you retire from teaching, claim your teachers pension and then go and work for Tesco part time?

Abatement (affects final salary pension only) concerns re-employment as a teacher after NPA. 

Yes - if you are re-employed in Tesco it doesn't matter.  Or in  a  private school which doesn't use TPS.

zagubov

IAMIAM said:

zagubov said:

hyubh said:

MissHoshiGirl said:

I think I mean to continue to pay pension and get ASAR annuity after a year or better to opt out of paying any more into my pension?

I'll be honest, I'm still unclear - you either are, or are expecting to become, a part time teacher eligible for the LGPS in that role (as opposed to some other job)...?

Yes I’m also unsure how that can happen. 

I retired from teaching and returned afterwards (have always been with the Teachers Pension Service). If you want to return to work after collecting your pension, there are many things you need  to consider.

If you retire before your Normal Pension Age (like I did) your pension will be permanently adjusted downwards to compensate for the longer time you’ll be receiving it (they call it actuarial adjustment and it’s perfectly fair).. 

If your combined pension + new salary mean you are earning more than before retirement, your pension may be reduced (abated) to correct this. I don’t think you’ll see that money again.

There’s a lot of good videos on the internet summarising the retirement options.

You might want to investigate how Phased retirement works. It involves collecting up to 75% of your pension if you drop at least 20% of your workload. There’s a limit to how many phases you can take

Alternatively you can retire completely, get your actuarially reduced pension and return to work but I think there's a lot of paperwork and yourun the risk of having  your pension abated.

There’s a weird loophole where if you retire completely and return to work after being retired for just one full day, your pension is never abated and your paperwork is massively reduced. It’s called the “one-day rule”.

If you’re somehow with the LGPS, you may have different choices. 

I wish you all the best . Retiring early and working part-time was, for me, the best way to retire.

Isn't this just calculated once at claim point and then your pension income will continually increase every year with CPI?

Yes that's what happens, although it means that you never actually catch up with your maximum pension.
Also the loophole where you retire one day only kicks in if you retire early even if it's just one day before your birthday, which is your usual retirement day. It doesn't even matter if it's the weekend but it's important that you do not work on the day you retire. .