Transfers

Transfers

Individual transfers—Defined Benefit (DB) occupational pension schemes

Members of DB occupational pension schemes have a statutory right to transfer the cash equivalent value of their scheme benefits to another pension arrangement. The cash equivalent (ie the transfer value) is guaranteed for a period of three months. The statutory right overrides any conflicting provisions in a scheme's trust deed and rules, although schemes can provide more generous terms for members who wish to transfer their benefits out of the scheme.

The statutory right applies when:

•
a member's pensionable service ends at least one year before normal pension age (or at any time before normal pension age in the case of a member whose normal pension age is earlier than 60), and
•
the member has accrued rights to benefits under the scheme

Since 30 November 2021, one of two conditions prescribed by the Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021, SI 2021/1237 must be met before a transfer to another pension scheme can go ahead (see below).

Since 6 April 2015, members can exercise the statutory right to transfer, (ie apply to take their

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Pensions News

TPR calls for elevated trustee governance standards for DB schemes in the era of pension surpluses within a changing pensions landscape

David Walmsley, Director of Trusteeship, Administration and DB Supervision at the Pensions Regulator (TPR), gave a speech at the DB Strategic Investment Forum entitled 'Securing benefits and investing for growth: the changing nature of defined benefit pensions' on 16 September 2025. TPR’s speech emphasises that trustees and administrators must redefine their roles to meet emerging challenges in the defined benefit (DB) pension landscape and are urged to acknowledge that a significant shift has occurred in scheme funding, as most schemes are now in surplus. Trustees are encouraged to work with advisers and employers early and re-examine funding strategies to ensure that valuation submissions under the new DB funding regime are robust - paying particular attention to long-term objectives, investment strategy, covenant strength, and recovery plans. Ultimately, trustees and administrators are warned that they must combine professional expertise with robust governance to manage modern pension schemes effectively. TPR confirmed that it is currently concentrating on issues frequently raised by the market, particularly the role of professional trustee firms and is assessing how these governance models function and handle potential conflicts, especially in integrated service arrangements. To encourage strong governance practices, TPR is due to issue guidance to clarify trustee expectations and showcase best practices. In parallel, TPR is collaborating with the government on an upcoming consultation aimed at developing a modernised regulatory framework for trusteeship and governance. Furthermore, a new strategy will soon be published, setting out TPR’s priorities and approach to improving trusteeship standards through compliance and oversight, with an industry consultation scheduled for the autumn.

Pensions weekly highlights—18 September 2025

This week’s edition of Pensions weekly highlights includes a review of key news stories, as well as dates for your diary and trackers.

IFoA research calls for legal reforms to modernise UK pension system

The Institute and Faculty of Actuaries (IFoA), in partnership with Ipsos, has published research calling for urgent reform of the UK pension system to better reflect modern working lives. The report finds that the current system, designed for uninterrupted careers with single employers, systematically disadvantages self-employed individuals, part-time workers, and those with disrupted work patterns, contributing to persistent pension gaps and increased risk of retirement poverty. Drawing on filmed interviews and actuarial analysis, the study reveals that these gaps are rooted in systemic design rather than personal choice. It recommends measures such as flexible auto-enrolment for the self-employed, early savings initiatives, improved communication around life events, community-based pension models, and a national pensions literacy strategy. These proposals aim to ensure the system remains inclusive, adaptable, and capable of delivering adequate retirement income for all.

GAD review finds LGPS Scotland funds all in surplus with £60bn total assets

The Government Actuary’s Department (GAD) has published its review of the 2023 actuarial valuations of the Local Government Pension Scheme (LGPS) in Scotland, as required under Section 13 of the Public Service Pensions Act 2013. The review found that all 12 constituent funds—covering approximately 600,000 scheme members—reported surpluses as of March 2023, with total assets amounting to £60bn and an aggregate funding level of 141%. This represents an improvement compared with 2020, when four funds were in deficit. The report also highlighted variations in the funds’ approaches to surplus management and recommended that additional guidance be provided to address intergenerational fairness considerations. GAD has advised Scottish Ministers, through the Scottish Public Pensions Agency, to continue engaging with stakeholders on consistency measures and to review climate risk analysis principles in advance of the 2026 valuations.