LG Pension Scheme query
vivvov
Posts: 116 Forumite
Hello All
I'm not offay with pensions etc but thought I'd better try and get a grip on what pensions I've got and what I should do with them.
I've got a few pension pots from moving job to job over the years...main ones are with Aviva and Aegon.....but I worked 7 months at a Local Authority (Essex) and stumbled on an old payslip whilst looking for something.
It states on the slip that I was enrolled in:
"LG Pension ---=LG Pension at 6.5% = 198.23
..then in the Balance section there's a couple of columns:
Pension Ees TD...198.23
Pension Ers TD...430.00
I think, from the look of it, it's the first payslip...and I was there 7 months.....so presumable built up a small pot of pension money.
Question is..what do I do?
Leave it?
or..I read somewhere that under 2 years contributions will mean it'll just be hoovered up and I'll get nothing as a pension, but that I could contact them and request the contributions as a lump sum...is that correct?
Thanks in advance.
I'm not offay with pensions etc but thought I'd better try and get a grip on what pensions I've got and what I should do with them.
I've got a few pension pots from moving job to job over the years...main ones are with Aviva and Aegon.....but I worked 7 months at a Local Authority (Essex) and stumbled on an old payslip whilst looking for something.
It states on the slip that I was enrolled in:
"LG Pension ---=LG Pension at 6.5% = 198.23
..then in the Balance section there's a couple of columns:
Pension Ees TD...198.23
Pension Ers TD...430.00
I think, from the look of it, it's the first payslip...and I was there 7 months.....so presumable built up a small pot of pension money.
Question is..what do I do?
Leave it?
or..I read somewhere that under 2 years contributions will mean it'll just be hoovered up and I'll get nothing as a pension, but that I could contact them and request the contributions as a lump sum...is that correct?
Thanks in advance.
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Comments
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I read somewhere that under 2 years contributions will mean it'll just be hoovered up and I'll get nothing as a pension, but that I could contact them and request the contributions as a lump sum...is that correct?
The LGPS 'vesting period' went down from 2 years to only 3 months between 2004 and 2014, so your options will be dependant on when you were employed by Essex. If the vesting period was only 3 months, then you will have a small preserved pension.0 -
The LGPS 'vesting period' went down from 2 years to only 3 months between 2004 and 2014, so your options will be dependant on when you were employed by Essex. If the vesting period was only 3 months, then you will have a small preserved pension.
Many thanks for the reply..
Glad it seems like it doesn't just disappear and counts for something..
I was employed September 2014 through to around May 2015.
..so what would that mean?
.and I am quite pension illiterate..what is a vesting period? and what are it's implications.0 -
The vesting period is the minimum amount of time you must have paid into a pension scheme in order to qualify for actual pension benefits.
As you joined after April 2014 - and have less than 2 years service - you don't have deferred pension benefits in the scheme. Instead, you can either ask for a refund of your pension contributions (less tax and NI rebate) or - as you have more than 3 months membership - you may be able to transfer your benefits to another pension scheme.
If you take the refund, then you will only get your own contributions (less statutory deductions). Your employer's contributions will be forfeited.
The transfer value will be much higher than the refund - so that's the way to go if you are currently a member of a pension scheme that will accept transfers in.0 -
Silvertabby wrote: »The vesting period is the minimum amount of time you must have paid into a pension scheme in order to qualify for actual pension benefits.
As you joined after April 2014 - and have less than 2 years service - you don't have deferred pension benefits in the scheme. Instead, you can either ask for a refund of your pension contributions (less tax and NI rebate) or - as you have more than 3 months membership - you may be able to transfer your benefits to another pension scheme.
If you take the refund, then you will only get your own contributions (less statutory deductions). Your employer's contributions will be forfeited.
The transfer value will be much higher than the refund - so that's the way to go if you are currently a member of a pension scheme that will accept transfers in.
Thank very much
I've taken a break from employment so as to help my mum through my dad's death and her close cousin's death..and the probate issues.. she struggling at the moment but we;re pretty much coming out of the woods..
I'm a Social Worker and have recently applied for a Local Authority post with a London Borough that I should have a good chance at getting.
....if I get the job, is the process: should I contact Essex CC and request a transfer?
....if I don't get the job, I was thinking of of opening a SIPP anyway and starting to contribute into it (read somewhere 2880/year even if unemployed)...can a SIPP provide the necessary envelop to transfer the LG Pension into it?0 -
If you get the job, contact your new LGPS provider and tell them that you have LGPS benefits with Essex that you would like to transfer in. There will probably be a 12 month limit on transfers in, so start the ball rolling as soon as you can. You'll be auto enrolled into the LGPS from day 1, so no need to wait until you have passed your probation (if applicable) - just allow a month or so for your details to be transferred from payroll to pensions.
If you don't get the job, then most SIPPs should accept a transfer in. The only problem I can think of is that there may be a lower limit on transfers - hopefully one of the other posters will be able to help you there.
You shouldn't need financial advice as you don't have actual pension rights.
Good luck !0 -
Silvertabby wrote: »If you get the job, contact your new LGPS provider and tell them that you have LGPS benefits with Essex that you would like to transfer in. There will probably be a 12 month limit on transfers in
Not quite, a frozen refund will be subject to auto-aggregation, once the new fund learns about it.0 -
Tip: call it LGPS. LG pension may get confused with pension provider Legal and General.0
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Reluctantpensioner wrote: »Tip: call it LGPS. LG pension may get confused with pension provider Legal and General.
The OP said, 'I worked 7 months at a Local Authority (Essex)' - there was no ambiguity.0 -
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I'm not offay with pensions
"au fait"?:)You'll be auto enrolled into the LGPS from day 1,
This should be the case but young relative found after eight months(!) that an error had led to his contributions not being made to the scheme....
He was also attempting to transfer in an NHS pension....... after more than a year this had still not been effected....and he has now moved on to LG in another area and is now waiting for both schemes to transfer in.....:eek:0
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