Transferring in pensions
If you have pension savings in another scheme, you may be able to transfer them into your current one. This page explains how the process works and what you need to do.
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Can I transfer my existing pension savings?
If you have pension savings in another scheme, you may be able to transfer them into your current one, depending on the type of scheme and how quickly you act. The information on this page will help you understand the rules and the process of transferring in your existing pensions, so that they’re all together in one place. But before you make any decisions, it’s important to get independent financial advice as it can affect your future income.
Most transfers to your current scheme must be within 12 months
If you are under the age of 75 and actively paying into a local government, firefighter or police pension scheme, you have up to 12 months to transfer in your savings from another scheme. This starts from the date you started your current job.
Always get independent financial advice before making any final decisions.
If it has been more than 12 months since you joined your current scheme, you need to make a request to LPPA (giving the reasons why it is outside of the 12-month window). The easiest way to do this is via our online contact form.
Please note
Your employer and then your pension fund make the decision to accept your transfer, usually only under exceptional circumstances.
What types of pensions can be transferred?
You should check with your existing pension provider first, but there are usually many different types of pension that can be transferred into your local government, police or firefighter scheme, including:
- Pensions already being paid to you.
- Pension schemes not approved by HMRC.
- Pension credit – a share of an ex-partner’s pension that has been awarded after a divorce or dissolution of a civil partnership.
Most public service pensions are defined benefit schemes, which means you’ll get a guaranteed pension income when you retire – this is a secure income for life, which is protected against inflation.
Public service pensions include schemes for civil servants, the armed forces, teachers, health service workers, fire and rescue workers, the police force, the judiciary and the LGPS (in England, Wales, Scotland and Northern Ireland).
Most of these pensions are also part of the ‘Public Sector Transfer Club’, which is a network of public (and some private) pension schemes that work in a similar way and have agreed to make it easier to transfer pensions between schemes.
Club transfers
If you transfer from a Club scheme, special rules apply, so the value of the pension transferred to your new account will be roughly equal to the amount you built up in your previous scheme and adjusted for any differences.
Club transfers can only be accepted if you transfer your benefits within the first 12 months of joining and have not had a break in membership of a Club scheme for more than five years. If you don’t, your transfer could be accepted on a ‘non-Club basis’ but the value of the transferred pension may be impacted.
Transfers and the McCloud remedy
If you are considering transferring in benefits you have built up in another public service pension scheme between 1 April 2015 and 31 March 2022, they may be protected by the McCloud remedy.
The remedy in the LGPS is very different from the remedy in other public service pension schemes. You should read the information about the transfer very carefully to make sure you understand how your benefits would be protected. Read more about McCloud and public sector pension transfers.
Most private or personal pension schemes arranged by you or your employer (also called money purchase arrangements) are defined contribution schemes. They allow you to build up a pot of money that is usually used to take as a lump sum, drawdown or annuity (annual income) at retirement.
Before transferring in a private pension, it’s important to weigh your options by considering:
- The value of the benefits in your existing plan compared with the benefits you could get in your current scheme (such as the guaranteed pension at retirement and lump sum options).
- The estimated amount of extra pension the transfer payment would buy in your current scheme.
- When that pension is due to be paid to you (ie Normal Pension Age).
- Other LGPS, FPS or PPS benefits (such as early retirement, death benefits, ill health etc).
Before you make any decisions always speak with an independent financial adviser as it could affect your future income.
Transferring in your previous pension benefits is an important financial decision. So, you might want to consider the following questions:
- When are you due to start receiving your pension payments?
If your current scheme has a different Normal Pension Age (NPA) to your old one, it could have a positive or negative impact on your future retirement income.
- Is your other pension a final salary scheme?
If your existing pension is part of a final salary scheme and your new pension is based on a career average salary, it may be worth finding out which pension gives you the best annual income.
- Does your existing pension include an automatic tax-free lump sum?
If it does, it’s worth checking that this still applies to your new pension.
- Is your existing pension a money purchase / defined contribution scheme?
These types of scheme are linked to the stock market. Transferring to a local government, police or firefighter pension scheme would remove that link (as these are defined benefit schemes), which could affect your future finances.
- What is the value of the benefits you could receive?
It makes sense to compare the estimated value of your existing pension benefits with the benefits you could get in your new scheme (such as the lump sum options and guaranteed pension). You should also consider other benefits that your local government, police or firefighter scheme offers (eg early retirement, death benefits, ill health etc).
The answers to all of the above questions can impact your future income. It’s best to speak with an independent financial adviser before making any final decisions.
How can I transfer in my pension?
Step 1. You let LPPA know
- When your employer lets us know that you have joined the pension scheme, we send you a welcome pack with a starter form, which you need to complete.
- This form includes a section on transferring in your existing pension benefits (your ‘pension rights’). You need to fill this in and confirm you wish to transfer in your existing pension.
- Alternatively, you can let us know you want to transfer in your benefits via our online contact form.
- If we don’t have a starter form with your details, we send you a Letter of Authority (LoA) to sign, which asks for your permission for LPPA to share information about your pension with a third party.
Step 2. You return the completed form
- You must submit any transfer requests within 12 months of starting your new role, so please complete the starter form a soon as possible. As long as we receive your request within 12 months, reaching this deadline will not prevent the transfer from being processed.
- It’s important to read the form carefully as any missing information could delay the process. We will let you know if anything is missing from the form or if we need any further information.
Step 3. LPPA contacts your previous provider
- After receiving your completed form (with all the relevant information we need), we contact your previous pension provider. If the schemes are compatible, we request a transfer value of your benefits.
- Please be aware, it may take several months for your existing pension provider to get back to us, which could delay the process.
Step 4. LPPA sends you a quote
- Once we have a transfer value, we calculate how much this would be worth in your current scheme and send you a quote, along with a cover letter and form from your previous scheme.
- Please note, we don’t charge you to transfer another pension into the local government, police or firefighter schemes but other pension providers may charge a fee for transferring out your benefits.
Step 5. Accept the quote
- To accept the quote, simply complete and return the enclosed form by the deadline on the letter.
- The easiest way to do this is via our online contact form.
Step 6. We arrange the transfer
- Once we have your confirmation, we arrange the transfer and let you know when this has been completed.
Please note
LPPA transfers pensions for free, but you may incur a cost with other providers.
How can I contact my previous pension provider?
If you’ve lost touch with your previous pension provider, you can use the Government’s free Pension Tracing Service to find their contact details.
