It is not possible for members of ‘unfunded’ public sector schemes such as the NHS, Civil Service or the Teachers Superannuation Scheme to transfer.

Other schemes can offer a transfer value. The Trustees will offer you a ‘Cash Equivalent Transfer Value’ (CETV) which is the value you can transfer to an alternative pension in exchange for giving up all your benefits under the scheme.

In order for you to have the statutory right to transfer, you need to have stopped accruing benefits in the scheme, and transfer more than 1 year before the scheme’s normal retirement date. In other circumstances the right to transfer is at the discretion of the Trustees.

It is a legal requirement you take regulated financial advice from a suitably qualified and authorised adviser before transferring a scheme with safeguarded benefits, if the transfer value is over £30,000. Also, the Financial Conduct Authority (FCA) requires all advisers to start the advice process by assuming the transfer is unsuitable, unless it can be proved with evidence that a transfer is in your best interests.

The flexibility to withdraw pension income as and when needed has seen an increasing number of individuals transferring their DB pension into a DC pension. Coupled with this, high transfer values have made it a seemingly more attractive proposition.

It is important to understand the advantages and disadvantages of DB pension transfers, as well as the associated risks such as giving up a guaranteed inflation protected income for life, in exchange for the CETV. The investment of the CETV and the potentially volatile returns which might not be sufficient to support you throughout life.

Without the right support, it is likely that many individuals could make poor decisions.

Please see the below to learn more.