Transferring out pensions
Whether you’re changing jobs or moving your pensions into one place, you may be able to transfer your pension benefits to another scheme. The information on this page explains the rules and how the process works.
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Can I transfer my pension out of the scheme?
If you’re leaving the local government, firefighter or police pension scheme, you may be able to transfer your current benefits to your new pension scheme. The information on this page will help you understand the rules and the process of transferring out your pension. But before you make any decisions, it’s important to get independent financial advice as it can affect your future income.
Pension transfers are a common target for scammers. To protect your savings, click below to find out how to spot the signs.
How the transfer process works
- Let us know you want to transfer out your benefits via our online contact form
- We must check if your new scheme meets certain conditions and if there are signs of a pension scam. We may contact you for more information about the scheme, how you were contacted and who advised you about the transfer. It’s important to give as much detail as possible.
- If we do not receive the necessary information or there are signs you are at risk of a scam, we do not process your transfer. You may also be required to attend a Pension Safeguarding Guidance appointment with MoneyHelper.
- We calculate how much your deferred pension is worth and send you a quote, along with a cover letter and written option form.
- The day we calculate this is known as the guarantee date, which means the quote is guaranteed for three months from that date.
- You should share this quote with your new pension provider as soon as possible so they can let you know what benefits the transfer would buy in their scheme.
- To accept the quote, simply complete and return the enclosed written option form within the guarantee period.
- Once we have your confirmation and carried out the necessary checks to ensure your new scheme is legitimate, we arrange the transfer and let you know when this has been completed.
- Generally, we process your transfer payment within six months of the guarantee date.
Click on one of the following buttons for information about your specific scheme
Am I eligible?
You can transfer your pension out of the Local Government Pension Scheme (LGPS) if you meet the following criteria:
If you are entitled to a guaranteed minimum pension (GMP), your transfer amount will exceed the quoted amount. Learn more about GMP
Additional Voluntary Contributions (AVCs)
You may be able to transfer your AVC plan to one or more different pension plans (even if you are still paying into the LGPS) as long as:
- You have stopped paying AVCs in all LGPS employments.
- You are not receiving an annuity or top-up pension bought with an LGPS AVC.
- You transfer all your LGPS AVC plans at the same time if you have more than one (except when you have an AVC awarded after a divorce or dissolution).
Just be aware, if you are still paying into the LGPS or you left the scheme after 31 March 2014, you can only transfer your AVC before your LGPS benefits are paid to you.
Getting guidance
By transferring your AVC to a different pension plan, you may be able to use it in ways that are not offered in the LGPS. The LGPS recommends you get financial guidance from Pension Wise – a free, government service from MoneyHelper that offer impartial advice to help you understand your AVC options.
Please note – your transfer application cannot be completed until you tell them you have either received guidance from Pension Wise or you do not wish to take it. This is a legal requirement.
Book a Pension Wise appointment online or visit their website to see other types of appointments you can book. You can also ask your pension fund to book an appointment for you.
Public service pension schemes
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).
The Club is a network of public and private sector pension schemes, which have agreed to make it easier to transfer pensions if you move between schemes.
If you transfer to 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 your new pension scheme 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 less.
Defined contribution schemes
Your new pension plan, whether private or through your employer, may be a defined contribution scheme (also known as money purchase arrangements).
In April 2015, the government introduced ‘Freedom and Choice’, giving members of defined contribution schemes more flexibility in how they take their pensions at retirement (such as buying an annuity). The LGPS is a defined benefit scheme, so the freedom and choice rules don’t apply.
But, you can transfer your LGPS pension to a defined contribution scheme to access flexible benefits. If the value of your LGPS deferred benefits is more than £30,000, you must (by law) take independent financial advice from an authorised adviser registered with the Financial Conduct Authority (FCA).
Find more information on the LGPS website.
Am I eligible?
You can transfer your pension out of the Firefighter Pension Scheme 2015 (FPS) to a HMRC registered pension scheme or Qualifying Recognised Overseas Pension Scheme.
Just remember, the transfer value of your FPS benefits may not buy the same amount of pension in your new scheme, but they should be able to provide you with an estimate of what you could get.
Important!
It’s wise to get independent financial advice if you need help choosing the best option for you. For more information, visit MoneyHelper, a free government service.
When can I not transfer out my pension?
Moving to another fire and rescue authority
When you move to a different fire and rescue authority, you can stay as a member of the FPS 2015 scheme. In most cases, as long as there is a gap of five years or less between jobs, your deferred benefits are joined with your new pension account automatically. You can choose to keep them separate, but you must decide within 12 months of re-joining the FPS.
The rules can vary depending on your circumstances and when you paid into the scheme. For more information, visit our Combining pensions web page or contact your new pension provider.
Am I eligible?
You can transfer your pension out of the Police Pension Scheme 2015 (PPS) to any HMRC registered pension scheme or some overseas pension schemes, as long as you have paid into the PPS for more than three months.
Just remember, the transfer value of your PPS benefits may not buy the same amount of pension in your new scheme, but they should be able to provide you with an estimate of what you could get.
Important!
It’s wise to get independent financial advice if you need help choosing the best option for you. For more information, visit MoneyHelper, a free government service.
When can I not transfer out my pension?
You can no longer transfer your police pension to any schemes that allow flexible access to benefits, which have different rules on how you can take your pension at retirement (eg defined contribution schemes).
Moving to another constabulary
When you move to a different constabulary, you can stay as a member of the PPS 2015 scheme. In most cases, as long as there is a gap of five years or less between jobs, your deferred benefits are joined with your new pension account automatically. You can choose to keep them separate, but you must decide within 12 months of re-joining the PPS.
The rules can vary depending on your circumstances and when you paid into the scheme. For more information, visit our Combining pensions web page or contact your new pension provider.
Transferring pensions overseas
If you’re transferring your UK pension savings to an overseas pension scheme, we usually need additional documentation and checks. Depending on where your overseas scheme is based, there may be a transfer tax charge.
For more information, visit the Government’s website.
5 things to consider
Transferring your deferred pension benefits is an important financial decision. So, you might want to consider the following questions:
If your current scheme has a different Normal Pension Age (NPA) to your new one, it could have a positive or negative impact on your future retirement income.
If you previously had a career average salary scheme and your new scheme is based on a final salary, it may be worth finding out which pension gives you the best annual income.
If it does, it’s good to check that this still applies with your new pension and how transferring out could affect your retirement income.
Such schemes are linked to the stock market whereas local government, police and firefighter pension schemes do not have that link (as these are defined benefit schemes). Depending on your scheme rules, it may not be possible to transfer to a defined contribution scheme, as the Government introduced new laws on this.
It makes sense to compare the estimated value of your deferred pension benefits (such as the lump sum options and guaranteed pension) with the benefits you could get in your new scheme. You should also consider other benefits that your local government, police or firefighter scheme offers (eg early retirement, death benefits etc).
