Individual transfers—DB occupational pension schemes
Individual transfers—DB occupational pension schemes

The following Pensions guidance note provides comprehensive and up to date legal information covering:

  • Individual transfers—DB occupational pension schemes
  • Statutory right to transfer
  • When does the statutory right to transfer apply?
  • Which schemes can a CETV be transferred to?
  • How to exercise the statutory right to transfer
  • Step 1—Member request for statement of entitlement
  • Step 2—Provision of statement of entitlement
  • Step 3—Member applies for transfer
  • Step 4—Trustees do what is needed to carry out transfer
  • Step 5—Statutory discharge for trustees
  • more

FORTHCOMING DEVELOPMENT: Following a period of consultation, the government decided to restrict the statutory right to transfer (contained in sections 93–101 of the Pension Schemes Act 1993) to transfers where the receiving scheme falls within certain categories — see Which schemes can a CETV be transferred to? below. The aim of this restriction is to prevent transfers into fraudulent schemes. The Pension Schemes Bill published on 16 October 2019 included provisions restricting the statutory right to transfer by enabling regulations to be made which would impose conditions based on the member’s employment and place of residence. For further information, see News Analysis: Pension Schemes Bill 2019 (Part 2)—funding, transfers and PPF changes.
As a result of the general election of 12 December 2019, the Pension Schemes Bill fell away on the dissolution of Parliament after midnight on 6 November 2019. However, it may be reintroduced in Parliament following the general election (especially as the Bill received cross-party support).

THIS PRACTICE NOTE APPLIES TO DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES

This Practice Note covers the considerations relevant when a member of a defined benefit (DB) scheme wishes to transfer their DB benefits to another registered pension scheme.

The pension freedoms introduced on 6 April 2015 have increased the number of transfer requests from DB