Transferring out of the old scheme
Update for members who chose to switch to the new scheme
All valid transfer requests received on or before 16 February by the old scheme may be paid on the basis of the original quotation. The Pensions Office has written to members in this position.
Transfer requests received after 16 February by the old scheme will not be paid by the new scheme, but most members affected by this will be able to apply for a new transfer quotation from the new scheme.
Update for members who have not chosen to switch to the new scheme
The Glasgow Pensions Office is no longer able to deal with enquiries from members who have not chosen to switch to the new scheme.
Members of the Old British Steel Pension Scheme can find further information here.
Transferring out of the new scheme
Transferring out means swapping your future benefits in the Scheme for a one-off sum of money that is transferred into a different pension arrangement.
Transferring out can give some members more choice about how and when they use their pension benefits. It is only an option for non-pensioners who are more than a year under their normal retirement age (which is usually 65).
The sum of money that you could transfer out is known as a ‘cash equivalent transfer value’, ‘CETV’ or ‘transfer value’. To find out what the transfer value of your benefits would be, you ask the Pensions Office for a transfer value quote. This quote is valid for a ‘guarantee period’, which is normally up to three months.
You should think carefully before transferring out. You would be giving up guaranteed future pension income in return for income that might not be guaranteed and could vary depending on how you manage it. You should take independent financial advice – and legally must do so if your transfer value is over £30,000. You should be very careful to avoid scammers and unscrupulous financial advisers. You can find an adviser from unbiased.co.uk. Make sure they’re authorised by the Financial Conduct Authority with permission to advise on pension transfers. You can check this by looking up the adviser at www.fca.org.uk.
Even though transfer values can seem very large, transferring out is unlikely to give you as much total pension income over your lifetime as the Scheme, on a like-for-like basis.
The Pensions Office will give you a transfer quote within three months of receiving the request. The transfer value quoted will be guaranteed for a three-month period, starting from the date it was calculated. If you don’t accept your quote during that period but you’re still interested in transferring out, you’d have to ask for a new quote.