Merging deferred local government pension to new one

RACHAEL222 · 10 November 2019 at 7:15PM

Hello all.
I'm hoping to get some advice:
My husband joined a local government pension in 1987 and had his pension with them until 2010. He then took a 2 year break and re-joined in 2012 but left original pension as deferred. He now has a new job on quite a bit more money and so his 2012+ pension is going with him but should he merge his 1987+ to this current one ( bearing in mind the retirement age for this is 65 and the new one is 67 year ( he is 55) any help would be much appreciated as it's a minefield and I'm worried we will make the wrong decision. Thank you

Fubbly · 10 November 2019 at 9:41PM

RACHAEL222 wrote: »

Hello all.
I'm hoping to get some advice:
My husband joined a local government pension in 1987 and had his pension with them until 2010. He then took a 2 year break and re-joined in 2012 but left original pension as deferred. He now has a new job on quite a bit more money and so his 2012+ pension is going with him but should he merge his 1987+ to this current one ( bearing in mind the retirement age for this is 65 and the new one is 67 year ( he is 55) any help would be much appreciated as it's a minefield and I'm worried we will make the wrong decision. Thank you

Its very likely to be beneficial to combine (if you are allowed - I think this is at the discretion of the employer -see link) as your husband's pension for service until 2014 is based upon his final salary.
https://www.lgpsmember.org/more/aggregation.php

Does your husband realise that he will meet the 85 year rule? - good news if he's thinking of retiring before 65.

Silvertabby · 10 November 2019 at 9:51PM

“ Hello all. I'm hoping to get some advice:
My husband joined a local government pension in 1987 and had his pension with them until 2010. He then took a 2 year break and re-joined in 2012 but left original pension as deferred. He now has a new job on quite a bit more money and so his 2012+ pension is going with him but should he merge his 1987+ to this current one ( bearing in mind the retirement age for this is 65 and the new one is 67 year ( he is 55) any help would be much appreciated as it's a minefield and I'm worried we will make the wrong decision. Thank you
Originally posted by RACHAEL222

Have you applied pensions increase to his 2010 leaving salary? Select the multiplication factor for his actual leaving date, and compare.

28-Dec-09 to 27-Jan-10 1.2273
28-Jan-10 to 27-Feb-10 1.2273
28-Feb-10 to 27-Mar-10 1.2273
28-Mar-10 to 26-Apr-10 1.2273
27-Apr-10 to 26-May-10 1.2242
27-May-10 to 26-Jun-10 1.2211
27-Jun-10 to 26-Jul-10 1.2181
27-Jul-10 to 26-Aug-10 1.2150
27-Aug-10 to 26-Sep-10 1.2119
27-Sep-10 to 26-Oct-10 1.2088
27-Oct-10 to 26-Nov-10 1.2057
27-Nov-10 to 26-Dec-10 1.2026
27-Dec-10 to 26-Jan-11 1.1996

Is there less than 5 years between his 2012+ service and his new job? If so, and if his new salary is still higher than his 2010 deferred record - and his employer allows him to aggregate all of his service (not a done deal in view of his previous election to keep his records seperate) then note that whatever he does his Rule of 85 protections will be limited to his pre 2008 service.

RACHAEL222 · 10 November 2019 at 11:26PM

Thank you - he re-joined in 2012 and his pension contributions has/will run concurrently with his new job without a gap. We can't remember the exact dates he wasn't in the pension scheme. I don't think he will qualify for the 85 year rule but still unsure if he should merge them- if they allow it?

RACHAEL222 · 10 November 2019 at 11:46PM

he re-joined nov 2012 ( break from ? /2010 - nov /2012) and has been in the pension from nov 2012 without a break - hope this helps. Sorry - not very pension savvy.

Fubbly · 11 November 2019 at 12:11AM

RACHAEL222 wrote: »

Thank you - he re-joined in 2012 and his pension contributions has/will run concurrently with his new job without a gap. We can't remember the exact dates he wasn't in the pension scheme. I don't think he will qualify for the 85 year rule but still unsure if he should merge them- if they allow it?

Why do you think he won't qualify for the 85 year rule? Hes 55 and joined the scheme 32 years ago. Even if he'd not returned to Local Gov he would meet the criteria. As Sivertabby suggests his salary when he left in 2010 and his salary now are the key figures - you say its quite a bit more - what's the %age difference?

RACHAEL222 · 11 November 2019 at 8:49AM

He has around 20 years before 2008 for 85 year rule and he is 55 so i didn't think he would meet that, His new wage is 20% higher than old one that he has just left and from 35% higher than his leaving wage at deferred pension. pension age at the deferred one is 65 though snd not 67 years. Thank you - i'm really unsure what he should do.

RACHAEL222 · 11 November 2019 at 9:04AM

I'm also not clear about which parts count towards the 85 year rule. ?

hyubh · 11 November 2019 at 9:32AM

RACHAEL222 wrote: »

He has around 20 years before 2008 for 85 year rule and he is 55 so i didn't think he would meet that

For deferreds, you include from leaving to 60+, as well as actual calendar service. (The precursor to the 85 year rule worked more like your assumption.)

Silvertabby · 11 November 2019 at 12:49PM

OP - as your husband was under 60 as at 31 March 2016 his Rule of 85 protections are limited to his pre 2008 service. As hyubh says, deferred membership counts towards R85 (still subject ot a minimum retirement age of 60) - but gaps in membership in between combined records doesn't. As your husband's break would only be 2 years, then that's not too much of a drama - but something to keep in mind for anyone else reading these posts.

RACHAEL222 · 11 November 2019 at 2:12PM

Thank you. One final question if I may. If you were in this position would you merge them? Will he keep his protection for 85 year rule if he merged them. Thank you

Merging deferred local government pension to new one

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free