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Transferring non-LGPS pension rights into LGPS?

If you have paid into a non-LGPS pension arrangement, you may be able to transfer your previous pension rights into the LGPS.  You have only 12 months from joining the LGPS to opt to transfer your previous pension rights, unless your employer allows you longer. This is an employer’s discretion; you can ask your employer what their policy is on this matter.  

If you opt to transfer pension rights from a non-LGPS arrangement then a sum of money called a transfer value is offered to buy a membership credit in the LGPS.  If you transfer your previous pension rights into the LGPS your retirement benefits will be based on membership including the membership bought by the transfer and, normally, your final years’ pay on leaving the LGPS. 

Any request you make to investigate a transfer will not be binding until you confirm that you wish the transfer to go ahead - transfer quotations provided by a former pension provider are guaranteed for three months.  As a transfer may not always be advantageous, you should always compare the quotation of LGPS membership and the value of LGPS benefits attached to that membership against the value of the package of benefits if left with your previous pension scheme provider.

Transferring your pension rights is not always an easy decision to make, and you may wish to seek the help of an independent financial adviser.

 

Additional Voluntary Contributions (AVCs)

If you have paid AVCs to a different AVC scheme or to a Free Standing AVC (FSAVC) scheme you can, if you wish, transfer them into the LGPS to buy extra LGPS membership.  You have only 12 months from joining the LGPS to opt to transfer these AVC rights to buy extra LGPS membership, unless your employer allows you longer.  This is an employer’s discretion; you can ask your employer what their policy is on this matter.  

 

How do I transfer?

Your Pension Fund administrator can advise you of the process for transferring previous pension rights into the LGPS.

Remember, you have only 12 months from joining the LGPS to opt to transfer your previous non-LGPS pension rights, unless your employer allows you longer.

 

Link to Scottish Government Website