If you have left Local Government employment and have deferred LGPS benefits, you can decide to either 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, including an Overseas pension scheme.
You cannot transfer your benefits if you leave less than one year before your Normal Pension Age (equal to State Pension Age or at least age 65).
Re-employed in local government If you re-join the LGPS with a new employer, you can elect for the pension rights you have built up to be added to your new pension account in the Scheme. You only have 12 months from re-joining the LGPS to opt to transfer previous LGPS membership, unless your employer allows you longer.
Other Re-employment If you enter further pensionable employment, which has an approved pension scheme, a transfer payment may be made to that scheme in lieu of the deferred benefits.
Transfers are also available to Personal Pensions and Buy-Out-Bonds. Details of any transfer payment will be given to your new scheme on request.
N.B. Deferred benefits are extremely valuable and you should consider all the facts before making any decision to transfer. You may wish to seek the advice of an Independent Financial Adviser.
Freedom and Choice Alternatively, if you are age 55 or over, you may wish to consider the option of accessing your pension savings under the Freedom and Choice legislation. More information is available here.
How do I transfer my deferred benefits?
If you wish to transfer benefits out of the LGPS, you must contact your new pension provider to request a transfer value quotation from the Fund. Under the Pensions Act 1995, a quotation must be guaranteed for 3 months from the date of calculation. Before transferring your LGPS benefits to a Defined Contribution arrangement, you MUST have obtained advice from an Independent Financial Advisor (IFA) authorised by the Financial Conduct Authority (FCA).