Can someone help,pension scheme??

Question

I have received a letter from my pension fund stating the following:

They are investigating the possible aggregation of the pension rights i have accured on earlier membership and note that when i ceased pensionable employment with city council i became entitled to an award of deferred benefits based on a final pay of £20k.

I then re entered pensionable employment with Service team at which time my annual pensionable pay was £20k.

They have then attached a letter with the Title: Notification confirming action taken in respect of earlier local government pension rights.

They have then asked me to tick either one of the below A or B

A)I wish to continue with action to aggregate my accured pension rights to my current employment.

B) I wish to retain separately the reward deferred benefits to which i am entitled on ceasing my employment with City council.

Underneath they then stated the following:Then i understand that i cannot make a subsequent election to aggregate this period of membership on later rejoining the Local Government Pension Scheme.

Sorry for should long question its just i would like my pension to remain the way it was with my previous employers City Council. And no one appears to know which one to tick.. Any help would be appreciated. Thanks

Answer 1

because pesions are so complicated it would pay you to see a financial advisor

every pension scheme is different each company having there own rules etc

has pensions are most important the decision you reach should be made on professional advise

get it wrong and you could have a long poor retirement

Answer 2

It sounds as though you have left one Local Government organisation and joined another.

I would answer A and add all your years service with Local Governments together into one scheme.

Answer 3

It is most likely that A) is the best answer to tick.  However, without details about the scheme and the aggregation it is difficult to comment.

Essentially, the service previously served will be added to the current service.  Therefore, if your pensionable salary is greater when you leave the second time, it will be to your benefit.

This is an unusual benefit, which really only occurs in government sponsored schemes.  However, it almost always is advantageous to take it up.

The only circumstances I can think of when it might not be is if you take a less well paid job.  However, it may be a career average scheme in which case this might not be important.