Combing pensions local government

[lostoldname]

I left a job in local government in 2012 and started a new one but didn't transfer my pension. I left and rejoined after a break so could now transfer in that pension. Is it best to do so. My salary is lower than 2012 and I don't think it will rise to that level (early 50s). Hope to leave age 60. Thank you.

Hi OP

Your pre 2012 benefits will have accrued in the final salary section of the LGPS. You will have rejoined the CARE section of the scheme. If you combine, your final salary benefits will be converted to CARE benefits. Ask for a quotation of what benefits would be provided if you combine, and you can then compare this to what would be provided if you leave them separately. That will hopefully help. A couple of other things:

• retirement age. If you keep separate, your final salary benefits will be payable in full from 65. If you combine, your normal retirement age will be the same as your state pension age which could be 67 or 68 and could increase further. Bear the relative retirement ages in mind when comparing the amounts payable.
• if you have to retire early it will be easier to get it all paid out if it’s combined. If you keep separate you would have to apply separately for the final salary benefits to be paid out which may or may not be allowed depending on your age and the circumstances. However, this may also mean that you could take the final salary benefits while still working FT, which you wouldn’t be able to do if you combine them (unless reducing your hours and taking flexible retirement).

In between your two LGPS roles did you work in public sector? If so you may qualify for an aggregation where you retain your final salary benefits and don’t need to have them converted to CARE

Thanks for your advice. I do have a choice between combining to keep a final salary scheme or to buy into the career average. Or to keep them where they are which might be better if it means that they will be paid at 65.