New to LGP - transfer in?

Confusedbymoney

Hi April I joined a LGP for first time.  I understand I will get 1/49th of salary per year although the contributions going in each month are approx £1K (between me and employer), I would only get just over £1,122 per year.  Not sure I understand that!  Also, I can transfer in (during first 12 months).  I have two questions:-
1) I honestly don't know how long I'll stay in this job - I might last less than a year!  Is it worth transferring in?
2) I have a number of very small pots (£5K).  Should I transfer these in and how would it affect the value (as I understand it, there isn't a "pot" as such).  Many thanks.

Marcon

Confusedbymoney said:

Hi April I joined a LGP for first time.  I understand I will get 1/49th of salary per year although the contributions going in each month are approx £1K (between me and employer), I would only get just over £1,122 per year.  Not sure I understand that!  Also, I can transfer in (during first 12 months).  I have two questions:-
1) I honestly don't know how long I'll stay in this job - I might last less than a year!  Is it worth transferring in?
2) I have a number of very small pots (£5K).  Should I transfer these in and how would it affect the value (as I understand it, there isn't a "pot" as such).  Many thanks.

1. If you transfer in from another pension scheme before you leave, then you'll qualify for a 'deferred pension' even if you leave in under two years. See https://www.lgpsmember.org/your-pension/thinking-of-leaving/leaving-before-retirement/ and read the section 'Leaving without deferred benefits' to see what would happen if you don't stay for two years and haven't transferred in benefits from another scheme.
2. Get the current values of these pots and ask the scheme to provide quotes for the benefits they'd secure in the LGPS.

JoeCrystal

Yes, since transferring it means that you would not need the minimum two years service, you can keep it there.

You will need to ask for quotes on what these pots will buy with LGPS

Please read the scheme-wide website and of course all the literature that your employer is providing. https://www.lgpsmember.org/your-pension/paying-in/

Umm yes, assume you are on £54,978 salary, you will accrue a pension of your salary for that year EVERY SINGLE YEAR , uncapped, index-linked for the rest of your life when you claim it.

However, I am confused, exactly how much is your salary for the year? I am assuming you are paying £389.42 gross per month for it? If so, you are a pretty much gold-standard pension scheme, easily the best in the country and very cheap as well.

Silvertabby

There's no link between your (and your employer's) contributions and a DB pension. That's determined by the accrual rate.  Using your figures, you (and your employer) pay in a one-off contribution of £1K per month (£12K per year).  In return, you get a fully index linked pension of £1,122 per year, every year, for the rest of your life. 

If you really believe that you will do less than 2 years, then transferring in your small pots will give you a deferred pension in the LGPS, as well as tidying up these tiny 'pots'.