Pension advice please...

[slinxy]

Hi

I have an old final pay local goverement pension with a city that a grew up near that I paid into for 32 months. I've recently started another job in the city that I currently live in which average pay local goverement pension.

Is it worth me transfering the old final pay LGP to this new one?

There is an off chance that I might move back to my home city and get another job where I can start paying into the old final pay pension again, also the amount is so small I don't think it will affect my current pension by the time I can start to claim it...

What would you do? I have a good few months left until I have to decide... it might be easiler in my old age if I had few pots to manage?

Thanks..

 

[blueboy2001]

It’s almost always worthwhile transferring LGPS membership to a new LGPS employer.

The only time it wouldn’t be was if your salary in the new job was lower than your previous service and is likely to remain so.

Your service transfers as-is, so you’ll have 32 months final salary service, but you’ll start to accrue career average revalued earnings (CARE) service going forward, regardless of your employer - the scheme changed a few years ago and all future service accrues as CARE.

If you don’t transfer your previous service your final salary will be your leaving salary for that job, inflation adjusted. Hence if your salary increases, it’s much better to transfer.

 

[randomshenans]

If you don’t transfer your previous service your final salary will be your leaving salary for that job, inflation adjusted. Hence if your salary increases, it’s much better to transfer.

I didn't know that was the rule, thanks for that. Doesn't matter to me now, as I'm in another country but interesting. I have a public sector pension for my 1 yr service, which still is about 1200 a year from about 15yrs ago.

 

[Quartz]

It’s almost always worthwhile transferring LGPS membership to a new LGPS employer.

The last time I checked they made it easy to do this.