LGPS to LGPS Final Salary

lancia

Hi, I'm wondering if someone could give me a little advice?

Situation, My salary was/is £48000 and I'm moving to a new location to be with my Fiancee, 
However the new salary will be a pay cut to £38000. I am 50 and have always been in the LGPS (GMPF) and have final salary benefits.
The new role is in a different LGPS scheme (WYPF) 

Would it be best NOT to transfer my pension to WYPF to save my final salary benefits on the higher amount? 
I'm not sure how all of this works, are there any issues with not transferfing? Are there any benefits by transferring or are there any options I've not considered?

Silvertabby

lancia said:

Hi, I'm wondering if someone could give me a little advice?

Situation, My salary was/is £48000 and I'm moving to a new location to be with my Fiancee, 
However the new salary will be a pay cut to £38000. I am 50 and have always been in the LGPS (GMPF) and have final salary benefits.
The new role is in a different LGPS scheme (WYPF) 

Would it be best NOT to transfer my pension to WYPF to save my final salary benefits on the higher amount? 
I'm not sure how all of this works, are there any issues with not transferfing? Are there any benefits by transferring or are there any options I've not considered?

How much pre 2014 service do you have is the first and most important question, because only pre 2014 accruals are linked to your final (whole time equivalent) salary.

If you have substantial pre 2014 accruals, and it does sound like you have, then you will be asked if you want to transfer your benefits to WYPF or leave them deferred with the GMPF.  

Your decision to transfer or not is a one time only offer, so it's important to get it right.  If you can.  Is your new post in the same field as your own, but in a lower grade?  If so, what are your chances of promotion back to your old grade?

Real crystal ball stuff, I know......

Leave deferred
Pre 2014 benefits calculated on salary as at date of leaving, £48K.  Value of benefits wll then increase each year in line with CPI inflation.

Transfer
Transfer would be calculated under Club Scheme rules, so previous higher salary is factored into the calculation....but...
On transfer, the pre 2014 benefits would be re-calculated using current salary of £38K.

You should be given an estimate of what your GMPF benefits will 'buy' you in the WYPF before making your final decision.

One thing I must point out, because **** happens, if you leave your benefits deferred with GMPF, and are then made redundant when you are over 55/57, you would only be able to take your WYPF benefits under redundancy terms (ie, unreduced for early payment).  You would be able to take your deferred GMPF benefits at the same time, but they would be subject to normal early payment reductions.

Good luck!

lancia

Not sure if this is what you need, but my current benefits Final salary is £12,144.64 and I've also got a lump sum attached of £22,220,82 

Marcon

lancia said:

Not sure if this is what you need, but my current benefits Final salary is £12,144.64 and I've also got a lump sum attached of £22,220,82 

How much of that, if any, was in respect of pensionable service in the LGPS pre 2014?

Silvertabby

Marcon said:

lancia said:

Not sure if this is what you need, but my current benefits Final salary is £12,144.64 and I've also got a lump sum attached of £22,220,82 

How much of that, if any, was in respect of pensionable service in the LGPS pre 2014?

A lot, including a substantial amount of pre 2008 service.

Sarahspangles

I have two deferred LGPS pensions which I didn’t combine, though at the time the explanation of pros and cons wasn’t as well articulated as Silvertabby’s. In fact the advisor mostly said ‘Well, I wouldn’t’ once they understood that I was likely to job hop a few more times before I retired.

Having two separate pensions has given me options. My plans have altered due to the pandemic, but one scenario was that I would have started to draw one pension from 55 ish to allow me to work part time past 60.

lancia

Hi this is all great information. I'm not intending on going back up the ladder, I may get another pay increase but it will be lower than my previous salary. So I doubt my final salary at retirement would be at the same level. And yes it's in the same type of Job. The 12k showing currently is all pre 2014. 

So I'm thinking maybe it's best to keep the GMPF pension as is and not transfer. Obviously I'll look in greater detail. Hopefully then not made redundant.