Transferring your pension
Perhaps you’re planning a move and starting to think about consolidating separate pensions. Keeping track of finances can feel overwhelming especially if you have multiple pension pots and providers to keep up with. Whether you’re joining the scheme or leaving the scheme, you may be able to transfer your pension.
Transfers In
If you have recently joined the NESPF, we welcome you to one of Scotland’s largest Local Government Pension Schemes (LGPS) where you join 76,000 members with one common interest – saving for retirement. You may be new in your role or you may have simply decided now is the best time for you to build up your pension. Whatever your circumstances, upon joining the NESPF, you have 12 months to transfer in other pension benefits you hold. We cannot however accept transfers from personal or private pension schemes.
Transfers in to the Fund are only accepted from:
- Other Local Government Pension Schemes
- Members of the Public Sector Transfer Club e.g. NHS Superannuation Scheme, Civil Service, Teachers pension schemes.
A full list of Club members is available on the Civil Service Pension Fund website.
Transfers Out
You may be considering transferring your pension out of the LGPS, to another scheme or provider, particularly if you’ve changed jobs. It is not always an easy decision to make so it can be a good idea to seek the help of an independent financial advisor.
If you’re thinking about doing this, the first step is to contact your new provider to see if they will accept the transfer. If they do, they might contact us directly to begin the process however you should follow their transfer procedure.
You cannot transfer out of the scheme while you are still an active member of the pension scheme paying contributions in. As such if you do make the decision to transfer your pension, you must opt out, or have left the Fund, before the transfer can be complete.
Conditions for Transfers
Due to regulation changes we must carry out specific checks before a transfer can be made. The Government has identified common pension scam risks which could suggest you are in danger of being scammed. These are called red and amber flags.
If you wish to transfer your pension out, we must assess whether any red or amber flags are present. In order to make this assessment, we may request more information from you.
For more information on this visit Pension Scams.
Perks of the LGPS
If you are considering transferring out of the LGPS, it is worth reminding yourself of some of the benefits that the LGPS offers that you may not get elsewhere. These include:
- A guaranteed annual pension which is paid for life.
- An inflation proof pension - so as prices and the cost of living increases, so too does your pension.
- Financial protection for loved ones should you die, with a tax-free lump sum and survivor's pensions payable.
- No investment ups and downs. You don't have to worry about poor investments or downturns affecting your pension, nor do you need to stress over where you should invest.
- Retirement flexibility. You can choose to take your pension from age 55, or if things are outwith your control you could get your pension paid due to redundancy or ill health.
It is worth checking what benefits your new pension provider will offers and how these compare to what the LGPS offers to ensure you are making the best decision for your savings.
Members with their pension on hold (deferred members) can get a transfer estimate from the My Pension+ portal if interested in transferring out. For more information on transferring your pension view the Transfer Notes in our Publications and Forms.
