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06 Jan 2009, Time:01:25

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"Club" and "Non-Club" Schemes

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Transfers In

'Club Schemes'

These are pension schemes which belong to the public sector transfer ‘club’. As well as the Local Government Pension Scheme (LGPS), all the other main public sector schemes are members, including the NHS, the Principal Civil Service Pension Scheme, and the Teachers’ Pension Scheme. These schemes offer broadly similar benefits which are all index-linked against inflation.

If you are transferring previous pension rights in from a club scheme within 12 months of joining the LGPS, the transfer value in most cases will buy nearly the same period (known as the service credit) in the LGPS, with some adjustment to allow for slight differences between the two schemes, because the age factors and pay used to calculate the service credit are the same as used by the sending scheme.

If, however, you transfer in from a club scheme more than 12 months after joining the LGPS, you will need your employer’s agreement for the transfer to go ahead.

'Non Club' Schemes

These are mainly private sector and personal pension schemes. The age factors used to calculate the service credit in the LGPS are different from club schemes and the pay used is the rate at joining the LGPS, so the service credit is usually a lot less than the period of membership in the private scheme.

If, however, you transfer in more than 12 months after joining the LGPS, you will need your employer’s agreement and the age factors and pay used to calculate the service credit in the LGPS are those which apply at the date the transfer value is received from the sending scheme, so the transfer credit will usually be less.

Wiltshire Pensions Fund, County Hall,Trowbridge, Wiltshire, BA14 8JJ.
© 2007 Wiltshire Pension Fund.