Transferring pensions

When you join the Clwyd Pension Fund, you have 12 months to start transferring any previous pensions. Your employer does have the discretion to extend this deadline, but they don’t have to.

First, you should complete a Transfer Authority Form for each pension that you want to transfer to us. You can find the form in the forms and resources section of our website. You must sign the form by hand as electronic signatures can’t be accepted.

Receiving your signed form allows us to speak to your other pension providers and ask them for the transfer value of the pension you have with them. Once we have the value, we can let you know how much annual pension it would buy you in the Local Government Pension Scheme (LGPS).

You must then complete some paperwork for us if you want to go ahead.

We will then ask your previous pension provider to pay the transfer value to us. Once this is done, you will not have any claim to pension benefits with your previous pension provider. The pension will be part of your LGPS benefits with the Clwyd Pension Fund instead. We will let you know when the transfer is complete.

Bear in mind that you don’t have to go ahead with the transfer if you feel it is not the best option for you.

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 LGPS Fund
• another public sector pension scheme (for example, Teachers, NHS)
• a personal or private pension plan

If you want to transfer out, you must do so at least 12 months before your normal retirement age in the LGPS. Your normal retirement age is either your State Pension Age, or 65 if later.

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

When comparing the two figures, remember that your LGPS 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 pension with the Clwyd Pension Fund to another pension provider, you will not be entitled to any future LGPS 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 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 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.