After you leave local government employment with deferred pension benefits, you have options of:

• leaving your benefits in the Fund, where it will be further increased with inflation each year, or,
  
• you can elect to transfer your benefits to a new employer’s scheme or into a personal pension plan. This may even be to an overseas pension scheme.

However, you cannot transfer your deferred benefits if you leave less than one year before your 65^th birthday.

Transferring within LGPS

If you are re-joining the LGPS with a new employer, you can transfer your previous LGPS membership to your new LGPS membership. Your benefits will then be based upon your entire period of LGPS membership and linked to your final pay on leaving your new job.

If you are moving to a job which is less well paid, you will need to decide whether it may be better to leave any deferred benefits in your old employer’s fund.

Employees only have 12 months from re-joining the LGPS to opt to transfer, unless your new employer allows you longer.

If you wish to transfer your deferred benefits you must do so within twelve months of leaving or such longer period as your employer allows. This is employer discretion; you can ask your employer what their policy is on this matter. The terms of the transfer ensure that you will normally be entitled to the same amount of membership in your new job as you were in the old one. If, however, you will be receiving a lower full time equivalent salary in your new employment, a transfer may not be beneficial and you should seek further advice.

Transferring to another pension arrangement

If you join another pension arrangement, either occupational or personal, you may wish to consider transferring your LGPS deferred benefits to it.

Your new pension provider will require a transfer value quotation, which is guaranteed by the Nottinghamshire Pension Funds for a period of three months from the date of calculation. Your new pension provider can then advise you of the additional benefits the transfer will buy in their scheme.

If you are considering whether to transfer benefits, make sure you have full information about the two pension arrangements;

• details of what your benefits are worth in the LGPS
• details of what your benefits would be worth in the new pension scheme, if transferred.

When you compare your options, don’t forget that your LGPS benefits guarantee cost of living increases.

You may wish to take independent financial advice when making this decision.

A transfer payment represents the cash equivalent value of your LGPS benefits at the time of the transfer. If a transfer payment is made, you will not be entitled to any further benefits from the LGPS for yourself, your spouse, civil partner , nominated cohabiting partner or your dependants.

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