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TRANSFERRING BENEFITS TO A NON-LGPS PENSION SCHEME
If you are interested in transferring the value of your LGPS pension rights to another occupational pension scheme (outside of the Local Government Pension Scheme in England and Wales), to a personal pension plan, to a stakeholder pension scheme or to a buy-out insurance policy you can ask for a transfer value quotation to be provided (known as the ‘cash equivalent’ transfer value).
Under provisions introduced by the Pensions Act 1995, a quotation must be guaranteed for a period of three months from the date on which it was calculated (the ‘Guarantee Date’). A written option to proceed with the guaranteed transfer value must be received within the three month guaranteed period.
If you opt to proceed, the normal time limit for the Scheme to pay the guaranteed transfer value will be six months from the ‘Guarantee Date’. If the Scheme does not make payment within this period it will need to recalculate the value as at the actual date of payment and pay the recalculated value or, if it is greater, the original value plus interest.
Transfer values are calculated in accordance with the terms and conditions of the Local Government Pension Scheme Regulations 1997 (as amended) which comply with requirements of the Pensions Schemes Act 1993.
