Combining your LGPS benefits

If you already have benefits deferred in the Berkshire Pension Fund in respect of a previous period of employment and you rejoin the pension scheme as an active member you have the option of combining these periods of membership together.

If your salary in your new job is higher than the salary on which your deferred pension benefits are calculated

Under current scheme regulations you have to elect whether or not to combine your two periods of membership together or to keep them separate. Please refer to the various points below before deciding whether to keep your deferred benefits separate from your current employment or to merge the two periods together.

1. Retirement benefits under the Local Government Pension Scheme are calculated using the average pensionable pay for the last year of employment. If you merge your benefits the value of your deferred benefits would be increased.
2. If you elect to keep your benefits separate, the deferred benefits will increase annually in line with inflation. Whilst these increases maintain the value of your deferred benefits you may expect that your pensionable pay in your new employment will increase at a more rapid pace thereby improving your benefits overall.

If your salary in your new job is lower than the salary on which your deferred pension benefits were calculated

If your salary in your new job is lower than the salary on which your deferred pension benefits are calculated please also refer to the various points below before deciding whether to keep your deferred benefits separate from your current employment or to merge the two periods together.

1. Retirement benefits under the Local Government Pension Scheme are calculated using the average salary for the last year of employment. If you merge your benefits and subsequently leave while your pensionable pay is at a lower rate, the value of your deferred benefits would be reduced.
2. If you elect to keep your benefits separate, the deferred benefits will increase annually in line with inflation. Whilst these increases maintain the value of your deferred benefits you may expect that your pensionable pay in your new employment will increase at a more rapid pace and therefore, overtake the value of your increased deferred benefits before leaving your new employment.

Please note: you will have 12 months from the date that you become re-employed in the Berkshire Pension Fund to investigate combining your deferred benefits with your new active job.