Transfers and personal pensions
Produced in partnership with Alistair Hill of CMS
Transfers and personal pensions

The following Pensions guidance note Produced in partnership with Alistair Hill of CMS provides comprehensive and up to date legal information covering:

  • Transfers and personal pensions
  • Statutory right to a transfer from a personal pension
  • Non-statutory transfer from a personal pension
  • When will the transfer be a recognised transfer?
  • Transfer due diligence
  • Additional requirements for transfers of safeguarded-flexible benefits from a personal pension scheme
  • Transfers into a personal pension scheme
  • Tax treatment of transfers to and/or from a personal pension scheme
  • Miscellaneous points

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. 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.

A pension transfer occurs when a person's entitlements under one pension scheme are moved to another pension scheme. The transferring scheme transfers relevant assets to the receiving scheme and the receiving scheme becomes responsible for