TRANSFERRING BENEFITS OUT OF THE SCHEME
After you leave local government employment with deferred LGPS benefits, you can decide whether to leave them in the Scheme, where they will be further increased with inflation each year, or transfer them to a new employer's scheme or into a personal pension plan. This may even be to an overseas pension scheme. You cannot transfer your benefits if you leave less than one year before age 65.
How to transfer benefits
If you wish to transfer benefits out of the LGPS, you must contact your new pension provider and request a transfer value quotation. Under the Pensions Act 1995, a quotation must be guaranteed for three months from the date it was worked out. The latest an option to transfer out can be made, is one year before age 65.
If you are considering whether to transfer benefits, make sure you have full information about the two pension arrangements; details of what your benefits are worth in the LGPS and details of what your benefits would be worth in the new pension scheme, if transferred. When you compare your options, don't forget that your LGPS benefits are guaranteed cost of living increases.
You may wish to take independent financial advice when making this decision.
If a transfer payment is made, you will not be entitled to any further benefits from the LGPS for yourself or any dependants.
Re-joining the LGPS with another Local Government Pension Fund
If you rejoin the LGPS, with a different Local Government Pension Fund, you should tell your new employer about your deferred benefits. Periods of membership transferred between LGPS funds will normally count at their existing lengths, but you should ask your new Pension Fund to confirm this.
