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 1: 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. After a first failed attempt to legislate on this measure (through the Pension Schemes Bill 2019), the Pension Schemes Bill 2020 was reintroduced in Parliament on 7 January 2020. This 2020 Bill (which differs from its 2019 predecessor only in minor ways) includes provisions restricting the statutory right to transfer by enabling regulations to be made which will impose conditions based on the member’s employment and place of residence. Note that, during the House of Lords Committee stage of the Bill, amendments were made which, if adopted, would extend these restrictions to unfunded public service DB schemes. For further information, see News Analysis: The Pension Schemes Bill 2020 (Part 2)—funding, transfers and PPF changes.
FORTHCOMING DEVELOPMENT 2: In July 2019 the Pensions Administration Standards Association (PASA) DB Transfers Working Group released ‘Defined Benefit Transfers: A Guide