Transfer DC pension into DB?

[chillipod]

Hello,

I recently started a new job with an LGPS pension. I have the option to transfer my (small) DC pension from my previous job into the LGPS pension. Is it worth doing or should I leave it alone?

I've tried to Google but it seems to come up with advice on transferring out of DB schemes rather than into it.

Do you know what you will be credited with in the DB pension?

Usually DB is worth more, but is less flexible. Check pension age for both.

Not enough information in the OP.

As a starter what is the value of your DC pension and what will that cash buy you in LGPS?

Your age may also be relevant.

I did this, and it was one of the best decisions I've made. (I had 7 years' worth of DC pension from a previous job.) The LGPS is fully index-linked, for one thing, and you're not dependent on investment performance.

But the biggest benefit is that if you transfer in at the beginning of your career in local government and then get promoted into better paid roles, your pension will be based on your average earnings. So a small amount transferred early on can translate into more actual pension than you might expect.

Sorry for not giving enough info, I am clueless to be honest and need to do my research!

I'm 30, DC pot says the total value is just over £11k so obviously not a lot. I'm not sure how I can establish how much that would buy me in the LGPS scheme, would I need to contact them for an estimate?

They will tell you how many years' service your pot buys when you apply. You don't have to go through with it at that point if you change your mind. Remember not to be put off if the amount seems low, especially if you are starting on a lower salary than you will reach during your career there (as mentioned in my previous post). At your age I think it makes total sense. Much better than having a tiny DC scheme that you have to keep track of over decades.

NB if you like the idea of investing, you could always open a SIPP to run alongside the LGPS, or go for the AVC Scheme if they have one that does salary sacrifice (you get the NI back as well as the tax relief).

@ClematisBlue49 that is not how the LGPS currently works.

Op- your transfer in will buy you £x amount of annual CARE pension in the scheme. This amount is fixed and will be added to this years CARE accrual. The amount will get increased each April as part of the revaluation of the pension.

Your pension administrator will provide you with a quote confirming how much pension the transfer in will accrue and you can decide whether or not to proceed.