Educational, not advice. This guide explains the rules on transferring a public sector pension. It is general information, not personal advice. Transferring out of a defined benefit pension is a major, usually irreversible decision, and most people who can do it should not. Take regulated advice before acting.
In short
- If you are in an unfunded scheme (NHS, Teachers, Civil Service, Armed Forces, Police or Firefighters), you cannot transfer your pension out to a personal or flexible pension. That has been banned since 6 April 2015.
- The LGPS is funded and works differently: a transfer out is possible, but it requires advice and is rarely a good idea.
- Moving between public schemes when you change jobs is a different thing entirely, handled by the Public Sector Transfer Club on favourable terms.
- Transferring safeguarded benefits worth more than £30,000 legally requires regulated financial advice first.
- A request to transfer is one of the most common pension scams. Treat any unsolicited approach as a red flag.
The short answer depends on your scheme
People usually ask this question for one of two reasons: they want to consolidate old pensions in one place, or they have been told they could access their money more flexibly elsewhere. The answer turns entirely on whether your scheme is funded or unfunded. For background on the difference, see our guide to how UK public sector pensions actually work.
Unfunded schemes: the 2015 ban
Most public sector schemes are unfunded, meaning there is no pot of invested money behind them; pensions are paid from current contributions and taxation. The NHS, Teachers’, Civil Service, Armed Forces, Police and Firefighters’ schemes all work this way.
When the pension freedoms arrived in April 2015, the government did not extend them to these schemes. From 6 April 2015, members of unfunded public service schemes were barred from transferring their benefits out to a scheme offering flexible access, such as a personal pension or SIPP. The reasoning was practical: there is no fund to release, and allowing large numbers of transfers would have created a real cost to the taxpayer. So if you are in one of these schemes, the freedoms-style “take it all as cash” route is simply closed to you. Your benefits stay where they are and pay out as a pension.
The LGPS exception
The Local Government Pension Scheme is the odd one out, because it is genuinely funded: each fund holds invested assets. That means a transfer out is mechanically possible, including, in principle, to a defined contribution arrangement.
Possible is not the same as wise. You would be giving up a guaranteed, inflation-linked pension for an invested pot whose value can fall, and you would carry all the investment and longevity risk yourself. For the great majority of members, that is a poor trade. If you are even considering it, the law requires regulated advice (see below), and a good adviser will start from the presumption that staying put is the right answer.
Moving between schemes: the Transfer Club
There is one kind of transfer that is positively encouraged: moving your pension between public sector schemes when you change jobs. The Public Sector Transfer Club is a network of schemes that agree to give incoming members broadly equivalent credit for the pension they built up elsewhere, rather than the often poorer terms of an ordinary transfer.
If you move, for example, from teaching into the civil service, a Club transfer can carry your service across on favourable terms. The key practical point is timing: you usually have to elect within 12 months of joining the new scheme, so it is worth sorting out early rather than letting it drift.
The £30,000 advice rule
Where a transfer out of safeguarded (defined benefit) benefits is allowed at all, and the benefits are worth more than £30,000, you are legally required to take advice from a regulated financial adviser with the relevant pension transfer permissions before proceeding. This is a consumer protection, not a formality. It exists precisely because transferring out of a defined benefit pension is so often the wrong call.
Why a transfer request is a classic scam
Because a defined benefit pension is so valuable, persuading someone to transfer it out is a prize for fraudsters. Scams typically arrive as an unsolicited call, text or social media message, promise unusually high returns or early access, and apply time pressure. If a transfer is being suggested to you rather than the other way around, treat that as a warning in itself.
Check any firm against the FCA register, never feel rushed, and read our guide to how modern pension scams target public sector members. The single safest habit is simple: a genuine opportunity will survive you taking a week to think and a phone call to a regulated adviser.
Common questions
Can I transfer my NHS or teacher’s pension into a SIPP?
No. These are unfunded schemes, and transfers out to flexible arrangements such as a SIPP have been banned since April 2015. Anyone telling you otherwise is mistaken or worse.
I have pensions from several public sector jobs. Can I combine them?
Often yes, through the Public Sector Transfer Club, which links your service across participating schemes on favourable terms. You usually need to elect within 12 months of joining the latest scheme.
I am in the LGPS. Should I transfer out?
Almost certainly not. You can, but you would swap a guaranteed inflation-linked pension for investment and longevity risk. The law requires advice for transfers over £30,000, and most advisers will steer you to stay.
Pension Plain’s take
For most public sector members the answer to “can I transfer out” is a straightforward no, and that is a feature, not a flaw. The schemes are built to deliver a secure, inflation-linked income, and the transfer ban protects members from giving that up under pressure. The transfer that is worth your attention is the helpful one: using the Transfer Club to join up your service when you change public sector jobs, ideally within the first year. And if anyone ever suggests moving your pension somewhere more exciting, that is your cue to slow down, not speed up.
This article is for general information and does not constitute financial advice. Transferring defined benefit pension rights is a significant decision. Seek regulated advice and check any firm on the FCA register before acting.
Key sources
- GOV.UK, Staff transfers between public service pension schemes.
- LGPS, Benefits in another public service pension scheme.
- Financial Conduct Authority, ScamSmart: protect yourself from scams.