confused about pension summary

Louise_Gibson

Hi everyone, sorry to have to ask this which is probably just me being stupid, but.....   I retired aged 56 last month from local government and have had my summary today which says i have 16 years and 87 days pensionable service @1/60th's on a final salary of £38,578 gives me a pension of around £12k a year.  
That is as expected, EXCEPT...! i transferred 14 years and 200 days into this scheme in 2012 but that isn't mentioned. Is it because they look at the 14 years and 200 days as an amount of money rather than time? Thoroughly confused ....i have asked my pension provider the question but it takes them literally weeks to respond I hope someone can help. Many thanks x

DRS1

My calculator makes it £10441.  So looks like something is added but?

When you did the transfer presumably you got something which said whether it was treated as added years of pensionable service or just an extra lump of money in your AVC pot for example.  Best to check that document.

Louise_Gibson

yes i have the letter from my current provider showing that the amount transferred purchased 14 years and 200 days. Glad i kept the letter!

Catonthemoon

When did you start the LG job? If it was as recent as around mid 2023 (although sounds unlikely), then your quotation would be about right. For Defined Benefit schemes (which LG employees would be in), the 14 years 200 days is what’s known as ‘transferred in service’; it’s a period of time, not a monetary value and is added to the length of service you go on to have with your new employer (LG), to give a total reckonable service. 

Your annual pension is then calculated on that service.

Presumably the 14 years 200 days service was from a previous job (ie not LG)?

Louise_Gibson

I started this job with local gov in 2012 and transferred in the 14 years 200 days from a previous local government job

Marcon

Are you sure you linked the two periods of service...?

JoeCrystal

I am bit confused tbh, I thought that your old LGPS benefits are usually join your current LGPS automatically rather than "transferred". Hmm, considering CARE started in 2014 and that fact you started working in 2012 in your new role, I wonder if you did have 14 years and 200 days service plus a year and 252 days in your new role before they changed over to CARE which added up to 16 years and 87 days.

I agreed with DRS1, I made it £10,440.72 based on the length of service as well.

Louise_Gibson

yes i've got the letter of transfer from my old employer and the acceptance by the new one, phew

Louise_Gibson

JoeCrystal  might be the answer...

Gimmeaminute

Don't quote me but I thought I'd mention a couple of things that might help things along. 16 sixtieths of £38500 is less than £10,300. I don't believe LGPS pensions are based on final salary any more and have been based on an average since the rules changed in 2014, did you start lower and increase over time? Also, you will more than likely have deductions because you are taking your pension several years before pensionable age of 60.

Hopefully the pension experts here will sort you out in no time.

NoMore

No LGPS expert, but I think your quote may be right, assuming if this quote is for what you would receive if you took it now at 56.

If we assume your full years' service is ~30.75 (that's your service plus your buy in), that will give you a pension of £20509 (30.75/60 * 38758). However, if you're taking it now, there will be an actuarial reduction of 39.5% (assuming your normal pension age is 67 and using this table Taking your pension :: LGPS) So that brings your pension down to £12408.

As I say not an LGPS expert but that's how I understand the scheme works. Somebody will be able to confirm, does your quote state how its calculated and mention the service and actuarial reduction factors ?