Should I move LGPS to teacher pension scheme?

pollypoo2

Hi everyone,

Hope you can help!

I've worked as support staff and paid into LGPS since 2014, but I've now become a teacher so have been automatically enrolled in the teacher pension scheme.

My question is... should I keep the two separate, or should I transfer the LGPS pot to the teacher pension scheme. I'm wondering if by doing so, I would increase the number of years of service I would then have as a teacher, which I believe would improve my final pension in the long run.

Any advice gratefully received. I'm not good with acronyms so please assume I don't know what anything means (apart from LGPS!!!)

Thanks

Silvertabby

pollypoo2 said:

Hi everyone,

Hope you can help!

I've worked as support staff and paid into LGPS since 2014, but I've now become a teacher so have been automatically enrolled in the teacher pension scheme. 

My question is... should I keep the two separate, or should I transfer the LGPS pot to the teacher pension scheme. I'm wondering if by doing so, I would increase the number of years of service I would then have as a teacher, which I believe would improve my final pension in the long run.

Any advice gratefully received. I'm not good with acronyms so please assume I don't know what anything means (apart from LGPS!!!)

Thanks

When exactly did you join the LGPS? If before April 2014, then you will have an element of final salary linking, which could change things. (But not by much).

But if you joined after April 2014 then all your LGPS benefits, like your new TPS benefits, are all CARE so previous service years won't count.

Either way you can ask for an estimate of how much TPS pension your LGPS benefits will 'buy' you before making a decision.

Kat78MFW

You need to check your NPA (normal pension age) for both schemes. If your old scheme would allow you to retire earlier than the new scheme, you might not want to move your LGPS.

hyubh

Kat78MFW said:

You need to check your NPA (normal pension age) for both schemes. If your old scheme would allow you to retire earlier than the new scheme, you might not want to move your LGPS.

If this is the LGPS in England and Wales, at most it will be three months at 65 vs. SPA.

pollypoo2 said:

My question is... should I keep the two separate, or should I transfer the LGPS pot to the teacher pension scheme. I'm wondering if by doing so, I would increase the number of years of service I would then have as a teacher, which I believe would improve my final pension in the long run.

Probably much of a muchness, though I would kick off the process for a 'Club' transfer to see what the TPS pension bought will be. If you did transfer, the CARE pension credit in the TPS would keep the in-service revaluation of the LGPS (CPI) rather than gain that of of the TPS (CPI+1.6%).