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Guidance on transferring out of the Local Government Pension Scheme.
The Local Government Pension Scheme is a Defined Benefit (DB) 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 DB scheme or a "Club" scheme (mainly public sector schemes such as Civil Service, Teachers' Pensions, NHS Pensions).
There may be some circumstances in which you wish to transfer your pension to a Defined Contribution (DC) pension scheme (where your money is invested in the financial markets).
Further information on transferring out of the LGPS is available by visiting the LGPS member website.
You will probably be asked for a Cash Equivalent Transfer Value (CETV).
We will provide transfer information (where applicable) within 15 working days of receiving a request. This will include:
If you wish to transfer to a DC pension scheme and the total transfer value of all your pension benefits in the Local Government Pension Scheme in England and Wales 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 from your own funds.
You can only request one CETV per pension account in a 12-month period which is guaranteed for three months or until 12 months before your Normal Pension Age if sooner.
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.
Please watch a short video explaining what you should consider before agreeing to a transfer.
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 Recognised Overseas Pension Schemes (ROPS) issued by HM Revenue and Customs (HMRC), see HMRC ROPS.
Some overseas transfers will be subject to a 25% tax charge, see HMRC overseas transfer tax charge.