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For members of the Local Government Pension Scheme in England and Wales

What happens if…?

I am protected by the underpin and I transfer my pension out of the LGPS?

As a deferred member, you may choose to transfer your LGPS benefits to a different pension scheme. Your pension fund will work out the transfer value of your benefits based on your age and the pension you have built up. For the period 1 April 2014 to 31 March 2022, they will compare:

  • The transfer value of the career average pension you built up, and
  • The transfer value of the final salary benefits you would have built up if that scheme had continued.

If the transfer value of the final salary benefits is higher, the difference will be added to the amount transferred to your new scheme.

Transferring your pension is not an easy decision to make and criminals are known to target pension savings. Find out more about Transferring your LGPS pension.

If you are protected and you have already transferred your pension, you will not miss out. Your pension fund will review the transfer value that they paid. They will contact you if an extra payment is due.

Do not be concerned if your pension fund did not contact you when the remedy came into force in October 2023:

  • Your pension fund has thousands of records to review. This is a huge exercise which will take many months to complete.
  • For many members, the pension they built up in the career average scheme is better than the pension they would have got from the final salary scheme. This means that the career average transfer value paid was higher than the final salary transfer value would have been and no extra payment is due.
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