Conditions for statutory transfer

From 30 November 2021, new conditions must be satisfied before members have a statutory right to a transfer from the LGPS. 

Members must satisfy either the "First Condition" or the "Second Condition". If they do not meet either of these conditions they lose their right to transfer.

First Condition

The First Condition is met if you are transferring to:

  • A public service pension scheme
  • An authorised Master/Trust
  • An authorised collective money purchase scheme.
Second Condition

The Second Condition applies to transfers to any scheme not covered by the First Condition. In this case we must look at the risk of transfer scams and we may need to ask you for additional information.

We have to check if there are any red flags or amber flags.

If there is a red flag you will not be allowed to transfer.

If there is an amber flag then you must obtain guidance from Money Helper and provide us with evidence that you have done so.

Red flags

The red flags are:

  • You have not provided a substantive response to our request for evidence or information
  • You have not provided evidence that you took advice from Money Helper after we asked you to do so as an amber flag was present
  • We have reason to believe that someone has provided pension or transfer advice to you without the appropriate permission from the Financial Conduct Authority 
  • Your request to make the transfer has been made following "cold-calling" by a party marketing the transfer
  • You have been offered an incentive to make the transfer
  • You have been pressured to make the transfer

If any of the red flags are present you will not be permitted to transfer.

Amber flags
  • You have provided an incomplete response to our request for evidence or information
  • We are concerned that some or all of the evidence you have provided in response to our request for information may not be genuine or may have been provided by a third party instead of you
  • The evidence you have provided does not demonstrate there is an "employment link" or "residency link" as required by the regulations
  • The receiving scheme includes high risk or unregulated investments
  • The receiving scheme is charging unclear or high fees
  • The structure of investments included in the receiving scheme is unclear, complex or unorthodox
  • The receiving scheme includes overseas investments
  • There has been a sharp or unusual rise in the volume of requests to make a transfer, either to the same receiving scheme, or involving the same adviser (or both)

If any of the amber flags are present then you must provide us evidence that you have taken guidance on scams from Money Helper - the guidance service provided by the Money and Pension Service.