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.
- For some LGPS members, you can get a pension transfer quote online by logging into your PensionPoint account and using the transfer calculator. Please note, the calculator cannot be used for refund quotes.
- We calculate how much your deferred pension or refund 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.
- We also send you a set of forms for your new scheme to complete, which you need to share with them.
- If you are a firefighter or police member and are transferring to another authority or constabulary and remain a member of the scheme, no transfer payment is made. We usually provide you with a certificate with details of your membership and pension accounts held by us (or you may need to request this). This certificate is used to transfer the information to your new pension account with your new employer.
- To accept the quote, simply complete and return the enclosed written option form within the guarantee period – along with the forms completed by your new scheme.
- Once we receive all the completed forms, we may check if your new scheme meets certain conditions and if there are signs of a pension scam. If we contact you for more information about the scheme like 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.
- After we have your confirmation and carry out the necessary checks to ensure your new scheme is legitimate (if applicable), we arrange the transfer and write to you when this has been completed.
- Generally, we aim to process your transfer payment within six months of the guarantee date. If it has been more than six months, we would need to re-calculate the transfer.
- Please be aware, there may be delays during this process due to different reasons like regulation changes in how we calculate your payment.
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 can transfer out your main scheme LGPS benefits but not your AVC plan.
Or, you may be able to transfer out 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 offers impartial advice to help you understand your AVC options.
Rules for defined benefit schemes
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.
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.
If you are considering transferring out benefits you have built up in another public service pension scheme between 1 April 2014 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.
Rules for defined contribution schemes
Most private or personal pension schemes arranged by you or your employer are defined contribution schemes (also called money purchase arrangements). 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.
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, which offers 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.
Before you make any decisions, always speak with an independent financial adviser as it could affect your future income.
Am I eligible?
You can transfer your pension out of the Firefighter Pension Scheme (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. If the gap is more than five years, you can choose to keep them separate, you can choose to keep them separate, but you must decide within 12 months of re-joining the FPS.
We usually provide you with a certificate with details of your employment period and pension accounts held by us (or you may need to request this), which is used to transfer the information to your new pension account with your new employer. It’s important to check this information is correct.
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 (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. If the gap is more than five years, you can choose to keep them separate, you can choose to keep them separate, but you must decide within 12 months of re-joining the PPS.
We usually provide you with a certificate with details of your employment period and pension accounts held by us (or you may need to request this), which is used to transfer the information to your new pension account with your new employer. It’s important to check this information is correct.
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.
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).
Before you make any decisions, always speak with an independent financial adviser as it could affect your future income.
