Transferring out of the LGPS

From 30 November 2021, new conditions must be satisfied before members have a statutory right to transfer their pension benefits away from the Local Government Pension Scheme.

Members must satisfy either the "First Condition" or the "Second Condition". If they do not meet either of these conditions, they lose their right to transfer.

First Condition

The First Condition is met if you are transferring to:

• A public service pension scheme
• An authorised Master Trust
  
• An authorised collective Money Purchase scheme

Second Condition

The Second Condition applies to transfers to any scheme not covered by the First Condition. In this case, we must look at the risk of transfer scams and we may need to ask you for additional information.

We must check if there are any red flags or amber flags.

If there is a red flag you will not be allowed to transfer.

If there is an amber flag then you must obtain guidance from MoneyHelper – and provide us with evidence that you have done so.

Red Flags

The red flags are:

• You have not provided a substantive response to our request for evidence or information
• You have not provided evidence that you took advice from MoneyHelper after we asked you to do so as an amber flag was present
  
• We have reason to believe that someone has provided pension or transfer advice to you without the appropriate
  permission from the Financial Conduct Authority
  
• Your request to make the transfer has been made following "cold-calling" by a party marketing the transfer
  
• You have been offered an incentive to make the transfer
  
• You have been pressured to make the transfer
  
• If any of the red flags are present, you will not be permitted to transfer

Amber Flags

The amber flags are:

• You have provided an incomplete response to our request for evidence or information
• We are concerned that some or all the evidence you have provided in response to our request for information may not be genuine or may have been provided by a third party instead of you
  
• The evidence you have provided does not demonstrate there is an "employment link" or "residency link" as
  required by the regulations
  
• The receiving scheme includes high-risk or unregulated investments
  
• The receiving scheme is charging unclear or high fees
  
• The structure of investments included in the receiving scheme is unclear, complex, or unorthodox
  
• The receiving scheme includes overseas investments
  
• There has been a sharp or unusual rise in the volume of requests to make a transfer, either to the same receiving scheme or involving the same adviser (or both)

If any of the amber flags are present then you must provide us evidence that you have taken guidance on scams from MoneyHelper - the guidance service provided by the Money and Pensions Service.