LGPS Pension

karen_swift

I have an LGPS active pension which began in 1999. I am wanting to leave my current employment and look for new employment with less hours. I am considering taking my LGPS pension on early retirement ( I’m 58) and have applied for another job that is also in the LGPS scheme.
My question is can I draw on my pension and still be employed but opt out in another job. I have read something about ‘ abatement’.
Also would I be better to keep enrolled until the Rule 85 kicks in?
Very Confused by all the rules of LGPS.

AlanP_2

@Silvertabby is your Fairy Godmother on this who can answer all your queries. She may not be on over the weekend so give her a few days to catch up.

My simplistic view is that opting out is the worst case outcome as you will be giving up a valuable benefit but have no idea how abatement etc, could impact.

Is the new job with a different employer?

Is the new job in a different LGPS admin area? Where I am that is county based.

Silvertabby

If you can, leave your current benefits until at least age 60 in order to maximise your Rule of 85 protections (ie, pension and automatic lump sum accrued up to 31 March 2008 will be paid without any reductions for early payment).  The reductions in respect of your post 2008 benefits will then be less if taken at 60 instead of 58.  If your new employer is also LGPS, then you will be offered the choice of combining your records, or keeping them separate.  Assuming you opt for the latter, then you could leave your first record deferred until 60, while starting a new CARE contract with your new job.

You could opt out of the LGPS in respect of your new post - but why on earth would you?  You'd be forfeiting the benefits of a very generous pension scheme!

Abatement, where pensions in payment plus salary can't exceed the old salary, remains an employer discretion in the LGPS.  But it is VERY rarely applied.  I'd be very surprised if your new employer imposes it, but easy enough to check before you start work.

karen_swift

Thank you, very helpful.
I didn’t even realise that I could have two LGPS records.
So it would appear that I would be best to freeze my current pension when I leave my full time current job and start a new record on my part time position with a different employer.
Another question.. when I reach 60 and meet the rule 85 would I be eligible to draw on my original pension whilst still in employment potentially until 67 and then draw on the second pension as well in full retirement 

Silvertabby

karen_swift said:

Thank you, very helpful.
I didn’t even realise that I could have two LGPS records.
So it would appear that I would be best to freeze my current pension when I leave my full time current job and start a new record on my part time position with a different employer.
Another question.. when I reach 60 and meet the rule 85 would I be eligible to draw on my original pension whilst still in employment potentially until 67 and then draw on the second pension as well in full retirement.

Yes, you can.  Just check the abatement question, although I have to say it's so rare in the LGPS that I'd be very surprised if it's an issue.