Transferring your pension out

If you want to transfer your LGPS pension out you should tell your new scheme that you hold benefits within the Scheme.

• They will approach us for a transfer value and let you know what the benefits are worth in their scheme.
• Your new employer or pension scheme will then work with you regarding whether you wish to go ahead with the transfer.
• If you decide that you want to go ahead with the transfer, they will ask us to make a transfer payment to your new pension scheme.
• There may be time restrictions in place. Check with your new scheme as soon as you join.

Deciding to transfer your benefits is an important decision. You may wish to take independent financial advice and there may be circumstances where you are required to take independent financial advice (see below).

An option to transfer your benefits (other than AVC’s) must be made at least 12 months before your normal pension age. The following points should be borne in mind if you are considering transferring out.

• You cannot transfer out your LGPS benefits if you are receiving an LGPS pension at the same time.  For example, if you are receiving an LGPS pension but also have a separate LGPS deferred benefit (a benefit you have built up but not yet begun to receive), you cannot transfer out the deferred benefit.
• If you are transferring out, you must transfer out all of your LGPS benefits at the same time.  You cannot transfer out one deferred benefit and leave another in the LGPS.
• If a full transfer payment is made you will not be entitled to any further benefits from the LGPS for yourself or any eligible survivors.
• You can transfer your LGPS pension to an overseas pension scheme if it meets certain conditions set by HM Revenue and Customs.

You will also find relevant details in the national website for members of the LGPS in England and Wales.

What do I need to be aware of?

If you are thinking about transferring your LGPS benefits to a defined contribution pension scheme and the value of that transfer is over £30,000 you must receive advice from a qualified independent financial adviser who is qualified to advise on pension transfers before you can transfer. We will require written evidence that you have received this advice before we will pay out any transfer value of your benefits.

The Government has set up an information service called Pension Wise on the MoneyHelper website. This is a free and impartial service that offers guidance to consumers about the options they have in relation to their pensions. They can help you understand the Government’s reforms and the options you have as an LGPS member.

You will be responsible for arranging and paying for any independent financial advice you receive. You can find an independent financial adviser in your area at www.unbiased.co.uk. 

Beware of fraudsters

The introduction of these freedoms could provide an opportunity for fraudsters to "scam" you out of your pension savings. This could be through a variety of means, such as:

• Cold calls
• Emails
• Doorstep visits
• Promises of unrealistically optimistic investment opportunities
• Asking you to transfer your money quickly, even sending documents to you by courier

Listed here is a summary of the warning signs the Financial Conduct Authority's (FCA) have highlighted to help people identify if they may be at risk of being scammed:  

• Is it unexpected? Scammers often call out of the blue. They may also try and contact you via email, text, post, social media, or even in person.
• Do you feel pressured to act quickly? Scammers might offer you a bonus or discount if you invest quickly, or they may say the opportunity is only available for a short time.
• Does the offer sound too good to be true? Fraudsters often promise tempting rewards, such as high returns on an investment.
• Is the offer exclusively for you? Scammers might claim that you’ve been specially chosen for an investment opportunity, and it should be kept a secret.
• Are they trying to flatter you? Scammers often try to build a friendship with you to put you at ease.
• Are you feeling worried or excited? Fraudsters may try to influence your emotions to get you to act.
• Are they speaking with authority? Scammers might claim that they’re authorised and often appear knowledgeable about financial products.

If you answered ‘yes’ to any of these questions, use the FCA Firm Checker or Contact the FCA to obtain more assurance.

If you do receive any unsolicited calls, emails or visits, you are strongly advised to be cautious. If you think you may have been contacted by someone who is not your adviser, or you think you may have been a victim of fraud, you can report this at https://www.reportfraud.police.uk/.