Pension dillemma (Local govt rules changed)

[LOVELYDOVEY05]

DH has recently discovered that his pension contributions up to 2004
have been put into a separate (and probably smaller) pot than the ones he has made since.
Now 2 choices : first, he can amalgamate both pots and get a higher
payout but he cannot take them until the State pension Age ie 68
Second keep things as there are and get slightly less but retire when he wants.
Does he take the risk to get a bit more?
He can work elsewhere part-time whatever happens. Thanks

I'm in local government and the pre 2004 pension was very generous as it's wholly based on final salary, compared to the current one which is based on average earnings. Personally I think it would be a bad move to try and amalgamate them and I'm not sure if that is even allowed. If you want more in monthly pension you can opt to have a lower lump sum from the pre 2004 pension which would ordinarily be 3 times the annual pension. Post 2004 the standard lump sum is much lower.

I’d just keep them as they are to retire sooner. He could even start a private pension to build up a top up to use pre 68. From 68, he’ll have plenty between the state and workplace pensions.

I assume from your post that he has two pots in the LGPS from two separate jobs - is that correct?

When did he start the second job and was there more than a 5 year break between them? That will affect the way that the benefits are treated if he joins them together.

If he does join them together he can still take payment of them all before 68 but they will be reduced for early payment. Have a look at www.lgpsmember.org

People here can’t really give accurate advice, because it will depend on how many years he has in each bit of the scheme, what his salary was during each bit of the scheme and which version of the scheme his second set of contributions are in. He should get professional pension advice.

Definitely get some independent advice, but the LGPS were incredibly helpful highlighting the key differences, after which it was quite easy to make an informed decision (in mine, to keep the funds separate due to having more flexibility with pot funds available at different times, the pots aren't huge which makes the flexibility more useful than the value.

Thank you all so much . I agree prof advice needed and without
details not easy. But it is helpful to mull it over with people in the
same situation.
He has worked there for 40 years and it has been a shock to find
out that the retire at 60 on final salary etc is not as straightforward
as previously . It looks like they have you either way

The best thing is for him to ring up his pension fund. They can’t give him advice or tell him what to do but they can explain all the implications and that might be enough for him to make a decision. If he’s still not sure then he will need independent financial advice.

I am in an identical situation. I switched jobs, but for some reason the pension wasn't amalgamated and I have two different pots with lgps. There was no break of service so I cannot understand how it has happened.
Length of service is about even in both at present, I am 20 years off retirement, should I merge them?

@W00t nobody here can tell you that. Ring your current fund and ask them to explain the implications of amalgamating/not amalgamating. If you’re still not sure you will need independent financial advice.

There’s so many variables that it’s impossible to say without the full picture. It will depend on your salary, service, when the change happened, future salary prospects if there’s an element of final salary benefits involved, when you hope to take payment of the benefits etc.

Thanks chessie.

The LGPS changed to average earnings not final salary in 2014 not 2004?
So he must have two pensions with them? With a break or not?
When I moved between local authorities I asked for my previous pension to be transferred in to my new LA?
I thought this could only be done during the first year though?