Transferring pensions

Local Government Pension Scheme, or LGPS Councillor, rules do not allow you to transfer previous pensions into the scheme.

However, if you have been a councillor before, you may be able to combine your previous pension to your new pension. You can only do this if:

• Both pensions are LGPS Councillor and administered by the Clwyd Pension Fund
• You ask to combine pensions within 12 months of rejoining LGPS Councillor

Your council does have the discretion to extend this deadline, but they don’t have to.

You can only transfer your pension benefits to another pension scheme if you’ve stopped paying contributions into the Clwyd Pension Fund. The main types of transfer out are to:

• another work pension scheme
• a personal pension scheme
• a buyout insurance policy
• a stakeholder pension scheme

You cannot transfer your LGPS Councillor pension into another LGPS Fund in England or Wales.

If you want to transfer out, you must do so at least 12 months before your normal retirement age in LGPS Councillor. Normal retirement age is 65.

Here are the steps towards arranging a transfer:

1. Check with your new pension provider that they will accept transfers and that you are inside any deadlines they have for receiving them.
2. If so, tell your new pension provider to contact the Clwyd Pension Fund on your behalf for a transfer quote. They may have an online process or form for you to do this.
3. We’ll work out the quote and pass it to your new pension provider. They will then let you know what pension benefits the transfer would buy in their scheme.

Our transfer quote will be guaranteed for three months: that is, if three months pass before you the transfer, you will need a new quote before going ahead later on.

If you are thinking about whether to transfer, make sure you have all of the information you need about the two pension schemes to compare:

• what your pension is worth in LGPS Councillor
• what your pension would be worth in the new scheme if you transfer

When comparing the two figures, remember that your LGPS Councillor pension will receive cost of living increases.

Bear in mind that asking for a quote does not mean you have to go ahead with the transfer. Please consider your options carefully and only transfer if you are sure it’s the right move for you. You should take advice if you need to.

However, if you do transfer your LGPS Councillor pension with the Clwyd Pension Fund to another pension provider, you will not be entitled to any future LGPS Councillor benefits for you, your partner or any children.

Transferring your pension is not always an easy choice to make. You may want to take advice first.

No-one involved with the Clwyd Pension Fund can give you personal, financial advice: you must speak to a properly qualified, authorised independent financial adviser.

Getting financial advice is very important if you are thinking about transferring your LGPS Councillor pension to a personal pension plan, a stakeholder pension scheme, a buy-out insurance policy, or to a money purchase scheme. This is because these types of scheme carry investment risk. which could reduce your pension value at retirement.

Please note: If the transfer value of your LGPS Councillor pension is more than £30,000, you must take independent financial advice by law before you can transfer it to a defined contribution pension scheme.

It’s important to make sure you can spot the warning signs of a pension scam. Some scammers’ tactics include:

• Offering free pension reviews or health checks
• Promising better returns on savings
• Suggesting you try to take your pension benefits before age 55
• Promoting tax loopholes, pension loans or upfront cash
• Forcing you to act quickly with tight deadlines or once-only deals
• Contacting you out of the blue.

In particular, cold calling about pensions is against the law. No company should contact you about your pension unless you have asked them to.

Once you have transferred your pension into a scam it’s too late. You could end up losing all your pension savings. In some cases, you may also face a tax bill of 55% of the value of the pension you transferred.

To make sure you don’t get scammed, follow these four simple steps:

Step 1: Reject unexpected offers

If you’re contacted out of the blue about a pension opportunity, the chances are it’s high risk or a scam.

If you get a cold call about your pension, the safest thing to do is to hang up. It’s illegal and probably a scam. If you get texts or emails you’re not expecting, ignore them. Report nuisance calls and messages to the Information Commissioner’s Office (ICO).

Watch out for offers of free pension reviews. Professional advice on pensions is not free.

Don’t let someone you know, even a friend or family member, talk you into anything. They could be getting scammed themselves. Check everything yourself.

Step 2: Check who you’re dealing with

Check that anyone offering you advice or other financial services is on the Financial Services Register. This means that the Financial Conduct Authority, or FCA, have authorised them to provide those services. If you need help checking, you can call FCA’s helpline on 0800 111 6768.

Make sure any firm you deal with is not a clone: that is, they’re pretending to be a genuine FCA authorised firm. Always use the contact details on the Financial Service Register, not the details the firm gives you.

Check the directors’ names and whether the firm is registered with Companies House. Search the company name and the directors’ names to see if others have posted any concerns.

You can also check the FCA warning list of companies to avoid: they’ve been reported for offering financial services in the UK without approval from the FCA.

Step 3: Don’t be rushed or pressured

Take your time to make all the checks you need. Be wary of promises of higher value pensions that sound too good to be true.

Step 4: Get impartial information or advice

You should think about getting financial guidance or advice before taking any action about your pension.