Transfer value for a deferred scheme member

The LGPS is a defined benefit pension scheme. The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) have stated that they "believe that it will be in most people's best interests to keep their defined benefit pension. If you transfer out of a defined benefit pension, you cannot reverse it. Make sure that you understand the risks to help you make an informed decision".

However, you may wish to transfer your pension to another defined benefit scheme or a "club" scheme (mainly public sector schemes such as Teachers' Pensions, NHS Pensions, Police Pensions).

There may be some circumstances in which you wish to transfer your pension to a defined contribution scheme, e.g a personal pension (where your money is invested in the financial markets).

You cannot transfer your deferred benefit out of the LGPS if you are currently contributing to or receiving any LGPS pension in England or Wales (excluding a dependant's pension or a pension credit from divorce). However in this case, we can provide a theoretical cash equivalent value (CEV) of your pension benefits for a financial adviser or for divorce purposes.

If you have more than one set of deferred benefits in the LGPS in England and Wales, you can transfer all or none of these benefits. You cannot transfer one deferred benefit to a different scheme and keep another in the LGPS.

Can I transfer?

To transfer your deferred benefit to a "Club" scheme (scheme operating a Public Sector transfer arrangement) you must:

elect for a transfer before your Normal Pension Age (NPA).

For a transfer of your deferred benefit to any other pension scheme you must:

elect to transfer at least 1 year before your Normal Pension Age (NPA),
not be an active contributing member of any LGPS scheme in England & Wales,
not be in receipt of an LGPS (England & Wales) pension (a dependent's pension or a pension arising from pension credit on divorce are not counted),
not have previously retired on Tier 3 ill health grounds.

Read about the conditions for a statutory transfer at: Statutory transfer

If you have more than one set of deferred benefits in the LGPS in England and Wales, you can transfer all or none of these benefits. You cannot transfer one deferred benefit to a different scheme and keep another in the LGPS.

For an active contributor who cannot transfer, we can provide a theoretical cash equivalent value (CEV) of your pension benefits for a financial adviser or for divorce purposes. See: Transfer value for active member

A pensioner cannot transfer their benefits, however if you require a CEV for divorce purposes see: Transfer Value for pensioner - divorce

What to do:

1. Criminals are targeting pension transfers. Scammers are looking for people like you. Please read Pension scams and Liberation, especially if you wish to transfer to a defined contribution scheme (e.g. a personal pension or an overseas scheme).

2. Identify your new scheme and research it carefully. Check on the internet to see if there are any problems reported with the scheme. See Pension Scams and Liberation for the warning signs to look out for. Research is not necessary if you are transferring to a public service pension scheme such as NHS Pensions, Teachers' Pensions, Civil Service Pensions.

3. Contact your new pension provider to find out:

if they can accept a transfer from a deferred benefit pension scheme (the LGPS is a deferred benefit pension scheme). Some schemes such as NEST do not accept this type of transfer,
their procedure for transferring,
their fees for administering a pension and whether there are set up fees on joining and/or exit fees on leaving (note the LGPS does not charge for the day to day administration of your LGPS pension).

You will probably be asked for a CETV which you can request through our forms page.

What to expect:

1. We will provide transfer information (where applicable) within 15 working days of receiving the cash equivalent transfer form. This will include:

a CETV,
a statement of your current pension benefits,
several forms (known as 'discharge forms') which need to be completed by you or your new scheme or, in some cases, your financial adviser and then returned to Pension Services.

2. If you wish to transfer to a defined contribution pension scheme and your transfer value is more than £30,000, then you will be legally required to obtain financial advice from an adviser approved by the FCA. The approved adviser will charge for this advice and you will need to pay the adviser directly.

3. You can only request one free CETV per pension account in a 12 month period. There will be a charge for each additional CETV.

4. If you decide to proceed with a transfer then we will make payment within 15 working days of receiving all the fully completed discharge forms. However, in some cases we may need to contact you for further information about your transfer and your reasons for transferring. This may delay your transfer.

5. Please note that one of two conditions must be met before a statutory transfer can take place: conditions for statutory transfer.

Transfer video

Please watch a short video explaining what you should consider before agreeing to a transfer: Videos

Overseas transfers only

Warning: if you transfer your pension to an overseas pension scheme, then it will no longer be protected by UK law.

The overseas pension scheme must appear on the list of Qualifying Recognised Overseas Pension Schemes (QROPS) issued by HM Revenue and Customs (HMRC), see HMRC QROPS.

Some overseas transfers will be subject to a 25% tax charge, see HMRC overseas transfer tax charge.