Who can advise re LGPS and consolidation?

squirrelchops2

Morning all.
I've currently 2 local government pension schemes. 

Pot 1 is deferred and I consolidated other LA pensions I had and another old work and private pension into it a number of years ago. I moved between 3 different LAs over 7 years so it's not a massive time I had putting money into LGPS. 

Pot 2 is a current LA one. I had been with a different LA who took so long to start my pension and I only got the pension details as i was leaving (7 months after starting!). So when I started new job I consolidated both and have kept in pension pot 2 rather than consolidate to pension pot 1. Accrued again over another 7 years.

My question. I'm starting a new job with the civil service.  I'd like advice on whether I should now consolidate pots 1 and 2 into this...ie go all in. I'm 48 so retirement isn't a million miles away.

Who would be able to advise on LGPS's etc? I asked a financial advisor before but they weren't able to advise.

Also, with the hive of knowledge on here...what would you do?

Sarahspangles

It’s more of a Civil Service question than an LGPS one.

I think your service adds up to 14 years? You will have service from two or maybe three schemes in the mix. I’ve lifted the quote below from https://www.lgpsmember.org/your-pension/paying-in/how-your-pension-is-worked-out/

Can you work out which schemes your service falls under? The reason for asking is that an older final salary pension (your Pot 1?) may pay out unreduced at 65. There’s also some advantages in having a pension that can be started for income to enable part time work e.g. from 60.

The LGPS changed from a final salary scheme to a career average scheme on 1 April 2014. If you joined the Scheme before 1 April 2014, you have built up benefits in the final salary scheme.
For membership built up between 1 April 2008 and 31 March 2014 you receive a pension of 1/60th of your final pay as a pension. 
For membership before 1 April 2008, you receive a pension of 1/80th of your final pay plus an automatic lump sum of three times your pension. 
Your final pay is usually your pensionable pay in the year you leave the Scheme. Pay from one of the previous two years can be used if it is higher.

squirrelchops2

Thanks.
Unfortunately it was 2015 I consolidated pot 1 into it's final resting place with that LGPS. So assume what I accrued 2010 to 14 under those calculations would be void.

Sarahspangles

I think that’s useful information - so you have Pension 1 with post 2008 service only, consolidated in 2015 and Pension 2 all of which is the current CARE scheme.

There are several people who post here with detailed knowledge of both the schemes and club transfer arrangements (feel like a footballer?) who are around most days.

squirrelchops2

Yes that sounds right.
I've 12 months to decide if I want to consolidate to civil service pension but I like to give myself time to think lol.

Lemon_dr1zzle

Your old and new LGPS schemes should be aggregated into one, unless you elect to keep separate. It would fall under the automatic aggregation regulations. 

Silvertabby

Ask Civil Service pensions for a quote, detailing how much CS pension a transfer would 'buy' then compare the figures.  You won't be committing to a transfer at that stage 

As you don't appear to have any R85 protections in the LGPS (which would have only applied to any pre 2008 accruals in any case) you may find that the benefits offered by the Civil Service will be very similar to your LGPS benefits.

So, it may just come down to two choices:  

Transfer your LGPS into the Civil Service for the convenience of having everything together. Or

Leave your LGPS benefits where they are, and draw them as extra income even if you are still working.

Dazed_and_C0nfused

Silvertabby said:

Ask Civil Service pensions for a quote, detailing how much CS pension a transfer would 'buy' then compare the figures.  You won't be committing to a transfer at that stage 

As you don't appear to have any R85 protections in the LGPS (which would have only applied to any pre 2008 accruals in any case) you may find that the benefits offered by the Civil Service will be very similar to your LGPS benefits.

So, it may just come down to two choices:  

Transfer your LGPS into the Civil Service for the convenience of having everything together. Or

Leave your LGPS benefits where they are, and draw them as extra income even if you are still working.

Could transferring to the civil service scheme move the NRA to a later date for the final salary element in LGPS?

Silvertabby

Dazed_and_C0nfused said:

Silvertabby said:

Ask Civil Service pensions for a quote, detailing how much CS pension a transfer would 'buy' then compare the figures.  You won't be committing to a transfer at that stage 

As you don't appear to have any R85 protections in the LGPS (which would have only applied to any pre 2008 accruals in any case) you may find that the benefits offered by the Civil Service will be very similar to your LGPS benefits.

So, it may just come down to two choices:  

Transfer your LGPS into the Civil Service for the convenience of having everything together. Or

Leave your LGPS benefits where they are, and draw them as extra income even if you are still working.

Could transferring to the civil service scheme move the NRA to a later date for the final salary element in LGPS?

Yes, from 65 to SPA.  But transfers under 'club rules' take this into account, meaning the two values will be broadly similar.

Plus, it doesn't sound like OP has a great deal of pre 2014 service.

JoeCrystal

Also bear in mind that AVCs if any are treated more generously within LGPS as far I am aware 

squirrelchops2

Hi.
I haven't contributed extra via AVC as haven't had enough spare wage. I may do so in new job as I'm taking a big increase in wage.

So, a plan could be to keep pot 1 where it is and just consolidate pot 2 to the new civil service pension?

I don't have much in pot 2 compared to 1 though.
At present pot 1's projection on retirement is around £800 a month pension. I can't remember pot 2 off hand but is nowhere near this.