Re-joining the scheme
If you rejoin the LGPS after having previously built up LGPS pension benefits, then these benefits can be combined with your new active pension account in the scheme.
If you opted out of the scheme on or after 11 April 2015, you will not be permitted to join the two periods of membership together and, instead, you will have two separate sets of pension accounts in the scheme.
If you rejoin the LGPS after having previously left an LGPS employment with a deferred refund, then this deferred refund must be combined with your new active pension account in the scheme. In these circumstances, the refund would no longer be payable.
More than one employment
Where you have more than one active employment and therefore more than one pension account in the LGPS, you can elect which active account to combine your previous LGPS pension rights with.
|Upon rejoining the scheme, the Clwyd Pension Fund will ask members for information regarding any previous LGPS membership and subsequently write out to the member ......|
|I have a Deferred Benefit in the LGPS||... providing them with all applicable options to combine their deferred benefit with their new active pensionable position.
Dependant upon when the previous deferred benefit was, will determine which options are available to the member
|I have a Deferred Refund in the LGPS||... notifying them that their deferred refund has either automatically been combined with their new active pensionable position, or notify them that they must take a refund of contributions from their previous position.
This will depend upon when the member contributed into the scheme in their previous position.
Final Salary Link
If the deferred benefit consists of only pre 1st April 2014 service, an election is required to either combine both pension benefits (with a final salary link) or to convert the deferred benefit into a CARE pension benefit.
A key protection surrounding the combining of pension records is the final salary link protection. This protection means the link can be retained if a member does not have a break in active public sector pensionable service of greater than 5 years, meaning that the final salary (pensionable pay) of the most recent combined position can be used to calculate all pre 31st March 2014 membership.
|JOB A||JOB B|
|Dates||01/04/1990 ---------------- 31/03/2012||01/04/2015 ---------------------31/03/2017|
If a member elects to combine both JOB A and JOB B, all pre 1st April 2014 service shall be calculated using the Full Time Equivalent pensionable pay at 31/03/2017, and NOT at 31/03/2012 due to this ‘final salary link’ (even though no benefits in JOB B were ever contributed to in the final salary scheme).
Losing the Final Salary Link
If the deferred benefit consists of only pre 1st April 2014 service, but a break in active public sector pensionable service of greater than 5 years has occurred prior to re-joining, the link to final salary is lost.
In these circumstances, if members wish to combine both periods of pensionable service they must convert the pre 1st April 2014 service into a CARE benefit which will stand alongside the members ongoing CARE benefits and continue to be revalued in line with inflation.
This conversion from service to CARE benefits is calculated similar to that of a transfer.
Upon re-joining the scheme dependent upon when a member rejoined the scheme and when they were previously a member in the scheme, members may have the option to combine positions or will be notified that positions have automatically combined.
i) A member’s deferred benefits -
- an be aggregated with a member’s active pension account.
ii) A member’s deferred refund –
- must be aggregated with a member’s active pension account
It should be noted that where a member opts out of the LGPS in their new employment within 3 months of re-joining the scheme their benefits cannot be aggregated as they will have received a refund of contributions through their pay and are treated as not having been a member of the LGPS in the new employment.
Where a member opted out of the scheme in an employment prior to 11 April 2015 with an entitlement to a deferred benefit and they subsequently re-join the LGPS the provisions in this document currently apply.
However, where a member opts out of the scheme in an employment on or after 11 April 2015 with an entitlement to a deferred benefit the provisions in this document do not apply, and you shall not be able to combine both records.
The golden rule is that a member’s deferred benefits can be aggregated with a member’s active pension account whereas a member’s deferred refund must be aggregated with a member’s active pension account.
The above rule applies equally to the cessation of a concurrent employment and also to optants-out just as they do for actual leavers.
When a member looks at the possibility of these events occurring where a person has membership which it to be aggregated which is only post-14 rights, or only pre-14 rights, or a mix of pre-14 and post-14 rights.