Local Government Pensions Scheme not letting me transfer pension

[Limmers14]

Hi everyone,

Is anyone part of the LGPS? I worked for a district council for a year and contributed to a pension. I’d like to transfer it to another workplace pension (Aviva) but have been told I can’t transfer the full value (approx £13k at last check) as it’s outside the three year window. I can only transfer my contributions? Has anyone experienced this? Surely it’s not allowed? I thought the government. wanted people to consolidate their pensions to allow for easier access.

Are you absolutely sure you aren’t better off leaving it where it is? If it’s a defined benefit scheme you would be crackers to try and withdraw into a defined contribution pot - it will be worth so much more left alone.

LGPS is a defined benefit scheme. What advantage would you acrrue by moving it to Aviva?

I am a deferred member of the LGPS and also have a defined contribution pension with Aviva. I've transferred in some old DC pensions to Aviva but left the LGPS where it is as I would lose out massively.

Do you know what income your LGPS pension will provide? Bear in mind it also increases with inflation.

I don’t understand why you’d want to move it. I’d keep it in the LGPS. It will continue to grow & you’ll get a set amount each year for life from it.

Are they offering you any kind of transfer or just a refund of contributions? I thought generally with a refund of contributions you only got yours but with a transfer that should be the full value. But I never really had much to do with the LGPS so they may have some kind of weird rule.

I can’t imagine why you would want to move it- you never move DB schemes

LGPS have their own rules which they’re allowed to set so it is allowed

If she was only in the scheme for a year she may not have a choice to stay in the scheme

What do you mean?

when you leave a job they just close your account to contributions and the money stays there until you retire when it’s paid out.

you can’t stay in the scheme for your new job unless it’s with another LGPS employer, but that’s not relevant

Can you transfer from Aviva into a government scheme does anyone know?

If you’re in the LGPS for less than 2 years and haven’t transferred pension in you can’t have a deferred pension. Same with civil service pension.

As you have less than 2 years service in the LGPS you are not entitled to a deferred (frozen) benefit in the scheme. The LGPS rules say that after 5 years (not 3) then the fund must pay you a refund of contributions. So yes, if you left more than 5 years ago you have lost your right to the transfer value.

Don't transfer it, it will be index linked and rise with inflation. Just leave it where it is.

Yes, within a certain time limit (12 months?)

People really shouldn’t comment on pension schemes they have no clue about.

OP - you can transfer to Aviva. Your contributions aren’t transferred, the Cash Equivalent Value is what is transferred so if you have been told the CEV is £13k then this is what will be transferred out.
Members of the LGPS are only entitled to a transfer out or refund if they leave or opt out within 2 years.

@Pinkdaisie thank you! Yes the LGPS is definitely a unique scheme. I understand the advantages of defined benefits schemes. I wish I had one but because I only worked there for a year, I’m not entitled to that based on my reading of my contract. I can leave my pension with the LGPS and it will accrue in value like a normal contributory pension and I can then draw down on it..

Because I’d like to have control
over my pension, I want to combine it with my current Aviva one but the LGPS are telling me that because I left more than 5 years ago, im
not allowed to access the total value, only the contributions.

Has anyone ever successfully challenged this?

Were you given details of the scheme during your employment and when you left? I. What grounds would you be challenging it?

There is nothing to challenge. The regulations are leave within two years and either receive a refund or transfer out. 5 years after your leaving date you lose the option to transfer and can only have a refund.
You cant leave it in the LGPS.

Thank you. I understand the rules they’ve put in place but what I don’t understand or think is fair, is that I’m not allowed to transfer my pension after this window. With other “private” providers, you are allowed. Why is the LGPS different when I am not receiving a defined benefit?

they are "different" because the source of the employer contribution is taxpayers money, not employer's own money, so someone, a long time ago, took the decision that politically it would be best if government funded pension schemes retained their value by hanging onto as much money as possible after the close of the timed transfer window

you may label that "unfair", but so is life.