Help finding a pensions advisor to transfer from LGPS to NHS

MartyMTB

Can anyone help?
I began looking into transferring a LGPS at the beginning of the year into the NHS scheme.

My LGPS pension recently transferred to a new administrator, which resulted in delays (on top of Covid-19 delays) as they wanted new forms completing, then there were errors in the quotes. The pensions administrator has now told me I need to go back to my former employer to get the correct figures. I'm concerned its getting close to the 12 month deadline to transfer.

I also have to provide proof I have been given independent pensions advice. I contacted some financial advisers who I believed could give pensions advice. Only one responded and they informed me they had chosen to no longer give pensions advice of the kind I required as have many financial advisors. I have found some larger firms but the costs seem excessive. I've tried looking at the FCA and tried the Money Advice Service (which doesn't seem to be working). How can I find an independent pensions advisor who can give advice on an occupational pension? Thank-you

hyubh

MartyMTB said:

I began looking into transferring a LGPS at the beginning of the year into the NHS scheme.

My LGPS pension recently transferred to a new administrator, which resulted in delays (on top of Covid-19 delays) as they wanted new forms completing, then there were errors in the quotes. The pensions administrator has now told me I need to go back to my former employer to get the correct figures. I'm concerned its getting close to the 12 month deadline to transfer.

I also have to provide proof I have been given independent pensions advice. I contacted some financial advisers who I believed could give pensions advice. Only one responded and they informed me they had chosen to no longer give pensions advice of the kind I required as have many financial advisors. I have found some larger firms but the costs seem excessive. I've tried looking at the FCA and tried the Money Advice Service (which doesn't seem to be working). How can I find an independent pensions advisor who can give advice on an occupational pension? Thank-you

This isn't correct. The new LGPS administrator thinks you are wanting to transfer out to a money purchase arrangement - go back to them and emphasise it is a Club transfer into the NHS.

PS - this is the sort of thing that will make an LGPS administrator hyper-cautious when it comes to non-Club transfers nowadays:

https://www.pensions-ombudsman.org.uk/decision/2019/po-21489/local-government-pension-scheme-hampshire-pension-fund-po-21489

However, this has nothing to do with a Club transfer.

xylophone

You would be transferring your DB pension with LGPS to a DB pension with the NHS.

You are not required to take advice to do this but you may do so if you wish.

https://www.lgpsmember.org/arl/already-left-tvout.php

One thing that an adviser may draw to your attention is that while it is possible to transfer out of LGPS ( a funded public sector scheme) to a Defined Contribution Scheme this is not possible with NHSPS (an unfunded public sector scheme).

dunstonh

I also have to provide proof I have been given independent pensions advice.

As mentioned above, that is not required when its LGPS to NHS.   

AlanP_2

One other point, I thought that the process would be along the lines of:

1. Complete relevant NHS form for a transfer in to their scheme (not sure if there is a specific one for Club Transfers?)
2. NHS contact LGPS for service, pension details etc.
3. NHS get back to you with their "quote" for what you will "buy" in the NHS scheme
4. You decide Yes / No and tick box
5. Job Done

Why are you dealing with LGPS admin team / ex-employer?

As regards the 12 month deadline, for transfers IN to the LGPS the process needs to start (Step 1 above, the form) within the 12 month window. Completion of the transfer can take longer. I would expect the NHS scheme to be the same but open to be corrected on that.

hyubh

AlanP_2 said:

Why are you dealing with LGPS admin team / ex-employer?

I may be wrong, but from what the OP has said, my guess would be, they challenged the deferred pension figures, and the administrator responded by saying they are correct for the data received from the employer, so if the OP thinks there is an issue, they need to get the employer to provide new information.

As regards the 12 month deadline, for transfers IN to the LGPS the process needs to start (Step 1 above, the form) within the 12 month window. Completion of the transfer can take longer. I would expect the NHS scheme to be the same but open to be corrected on that.

Club transfers are 12 months full stop, non-Club transfers into the LGPS (so not relevant here) 12 months by default with employer discretion to extend.

MartyMTB

xylophone said:

You would be transferring your DB pension with LGPS to a DB pension with the NHS.

You are not required to take advice to do this but you may do so if you wish.

One thing that an adviser may draw to your attention is that while it is possible to transfer out of LGPS ( a funded public sector scheme) to a Defined Contribution Scheme this is not possible with NHSPS (an unfunded public sector scheme).

Thank-you, whilst I did not find a pensions adviser who could sign the form the pensions administrator has told me I needed signed (which I now know due to everyones helpful advice on the forum I don't need signed), they did give me a list of questions to ask both schemes to help me make my decision and one of them was about transferring in future. I had been told by someone else I would not be able to transfer an NHS pension.

However, the 2015 NHS pension scheme guidance does say that benefits 'may' be transferred elsewhere, it then discusses 'club' transfers and schemes with defined benefits, so in some circumstances it can be done (possibly).  If I understood the guidance I will get a credit in the 2008 section of the NHS pension scheme, but still follow the 2015 rules. I believe both LGPS and NHSPS schemes have similar accrual rates but I believe that transferring should give me a benefit in relation to the final salary element of my pension. Although I'm not sure I am understanding everything clearly. 

The link you gave was really helpful. Thank you.

MartyMTB

AlanP_2 said:

One other point, I thought that the process would be along the lines of:

1. Complete relevant NHS form for a transfer in to their scheme (not sure if there is a specific one for Club Transfers?)
2. NHS contact LGPS for service, pension details etc.
3. NHS get back to you with their "quote" for what you will "buy" in the NHS scheme
4. You decide Yes / No and tick box
5. Job Done

Why are you dealing with LGPS admin team / ex-employer?

As regards the 12 month deadline, for transfers IN to the LGPS the process needs to start (Step 1 above, the form) within the 12 month window. Completion of the transfer can take longer. I would expect the NHS scheme to be the same but open to be corrected on that.

I thought that would be the process, but the new administrator would not accept the NHS form and sent me their own to complete, and then sent the first quote which was non-club terms, even though I had made it clear I needed it on club terms. The second 'club' quote was a lower value. Whilst I was looking into that I noticed a figure they used was wrong and I've been trying to get the correct figure from my former employer. 

I'm notifying NHSPS of the reasons for the delay so its recorded prior to the 12 month point.

Thank-you for the advice.

xylophone

However, the 2015 NHS pension scheme guidance does say that benefits 'may' be transferred elsewhere, it then discusses 'club' transfers and schemes with defined benefits, so in some circumstances it can be done (possibly). 

The point is that the NHS pension cannot be transferred to a DC Scheme offering flexible benefits.

It can be transferred to another Defined Benefits Scheme.

An LGPS pension can be transferred to another DB Scheme or to a Scheme offering flexible benefits.

xylophone

https://www.nhsbsa.nhs.uk/sites/default/files/2018-11/Leaving Early and Transferring Out Guide (V16) (printable) - 11.2018.pdf