Changing from local govt. pension scheme to private company's scheme.

[NomoneyNohoney]

My wife has worked in a school kitchen for over 2 years. She is included on the Local Government Pension Scheme, which changed from a final salary scheme to a career average scheme in 2014.

The kitchen work has been contracted to a new private company, thus at the beginning of the new school term in September, she will cease to be employed by the school, and will transfer onto the new company's books. I anticipate that she will no longer qualify for the LGPS, so will need to be inducted into the new company's scheme.

Is this new scheme likely to be significantly different to her current scheme, bearing in mind the LGPS no longer has final salary schemes? Naturally, we'll read their information packs eventually, but wondered whether the current LGPS is anything better than the norm? Just trying to get a heads - up prior to getting their paperwork.

[Chrysalis]

You should check carefully the terms of her transfer to th private company, in relation to pension provisions.
Although the LGPS is no longer final salary, it is still a defined benefit scheme meaning that she will receive a guaranteed pension. This is almost certain to be much more valuable than what will be offered by a private company, which will likely be a defined contribution scheme, meaning that your wife’s (and employers) contributions are simply invested and there are no guarantees of any outcome.
I would first clarify what the transfer of employer means in terms of pension membership and whether there is any provision to continue in the LGPS.

[Mike88]

I think the problem here is that even if the private company's pension scheme is inferior to the LGPS which will almost certainly be the case what can you do about it?

[DrBunsenHoneydew]

I imagine this is a TUPE transfer.
Pension protections: https://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/leaving-your-pension-scheme/tupe

When transferring to a Private Sector Employer from a Defined Benefit scheme, they must provide:

Defined benefit scheme which provides specified level of pension, or

Defined contribution scheme which matches employee contributions up to 6% of basic pay, or

Defined contribution scheme (either workplace or personal/ stakeholder pension) which matches level of contributions the old employer had to pay (up to 6% of basic pay)