Teacher Pension Transfer
We get lots of enquiries asking about teacher pension transfers and what the risks or benefits of doing so might be.
While there are a number of options for transferring pensions, the Teachers’ Pension Scheme is public sector funded and thus has more restrictions to transferrals in place.
However, the pension transfer specialists we work with are well versed on transfer rules and their exceptions.
They can help you successfully navigate the pension transfer market and fill you in on potential alternative options to transferring a teacher pension.
In this article, we’ll cover:
- Can I transfer my teacher pension?
- How do I work out its transfer value?
- Where can I transfer my teacher pension to?
- Should I transfer?
- How do I transfer a teacher pension?
- Can I transfer into a teacher pension?
- Transfer a teacher pension into a SIPP
- Speak to an expert about transferring your pension
We work with pension transfer specialists who can help you with any transfer requirements you may have.
Can I transfer out of my teacher pension?
Generally, it’s not possible to transfer out of a Teachers’ Pension Scheme if it’s part of the unfunded public sector scheme. However, there are some exceptions to the rules.
You can transfer out of your teacher pension if…
- You are in a private sector defined benefit scheme
- If you have a funded public sector pension scheme
- If there are some safeguards in place for the schemes
If you are unsure of whether or not you will be able to transfer out your teacher pension you may want to seek out independent expert advice. Make an enquiry and we’ll match you with a pension transfer specialist free of charge.
How do I work out my pension scheme’s transfer value?
Your transfer value is the total cash equivalent of your teacher pension if you were to move to another provider. If your cash equivalent transfer value is less than the overall value of your teacher pension pot, you could be charged an early exit fee.
However, if the transfer value is equal to the value of your pension pot, it’s unlikely an early exit fee will be slapped on.
You will need to ask your provider to calculate your pension pot value to find out what the value would be if you chose to transfer.
Where can you transfer your teacher pension scheme to?
If you are able to transfer your teacher pension scheme, you may be wondering what the alternatives are and where is best to transfer your pension into.
Here are a few potential options…
- A stakeholder or personal pension
- A self-invested personal pension (SIPP)
- Another employer’s pension scheme
There are some alternatives to teacher pension transfers that are not mainstream market knowledge, so it’s worth speaking to an expert teacher pension advisor to discover the hidden niches and options available to you.
If you find that you have good reason to want to transfer your teacher pension but are not able to, it’s still worth getting in touch with one of the pension transfer specialists we work with who can guide you through any options that may be available to you.
Should I transfer my teacher pension?
Many people call us to ask if they should transfer their teacher pension. Some common reasons for wanting to transfer could include:
- You have more than one pension pot and want to combine pots for easier oversight.
- You are moving to another country and want to move your pension along with you.
- You feel you don’t have enough control over your pension and you’d like more responsibility for managing your pension investments.
- You want to find a scheme where you pay less fees.
Whatever your reason for wanting a teacher pension transfer, there are risks as well as benefits to moving your pension pot and it’s important you seek out expert advice from a teacher pension transfer specialist.
We work with a large pool of experienced pension experts and can connect you to the right advisor for your circumstances, so make an enquiry today.
How do I transfer my teacher pension?
First, make an enquiry to ensure you have access to specialist advice from an independent pensions expert every step of the way.
If you are in a teacher’s pension scheme that’s part of the unfunded public sector pension scheme, you may need to explore pension transfer alternatives. Speaking to a teacher pension transfer specialist can help you discover which options may be on the table for your situation.
If you are able to transfer your pension, you will need to find out from your provider what your teacher pension transfer value would be and enquire about any potential transfer fees.
You can do the homework of assessing which pension scheme you’d like to transfer into with the help of a pension transfer expert. Next, you will have to submit a pension transfer application. Your financial advisor will help you take care of handling other important documents and transfer processes.
Can I transfer into a teacher pension?
You can transfer pension credits for a previous scheme into a teacher pension, but you have to apply for a transfer within 12 months of entering into the Teachers’ Pension Scheme. However, the scheme you are transferring out of has meet Her Majesty’s Revenue and Customs (HMRC) requirements.
Can I transfer a teachers pension to a spouse?
After you die, your spouse will automatically receive your pension benefits. The same applies to a partner as long as they meet the qualifying criteria and you have 2 years or more of pensionable service from January 2007.
Can I transfer a teachers pension into a SIPP?
The answer is yes! In some scenarios, you can transfer your teacher pension into a Self Invested Personal Pension (SIPP). While many SIPP providers may decline a transfer in from a teacher pension, the pension transfer specialists we work with will be able to lead you directly to providers who are a match for your situation.
A SIPP can offer the benefits of greater control over your pension investments, but you could also lose pension value and benefits as a downside to transferring. That’s why the government recommends you get expert advice before making a decision as monumental to your retirement as a pension transfer.
Can I transfer a pension into a teacher’s pension?
Yes! You can transfer a previous pension into a teacher’s pension, but your previous pension scheme will need to pay a transfer value and meet HM Revenue & Customs’ rules. The process of transferring pensions can be lengthy, and you’ll have 12 months to complete the transfer from the point of returning to pensionable teaching service.
One of the pension transfer specialists we work with will be able to help with arranging your pension transfer if you make an enquiry.
Transfer LGPS to teachers pension
LGPS members can transfer their pension into a teacher’s pension, and in many cases it could be beneficial to have both pensions under one roof. However, you may want to first speak to an expert who can help you consider the relative performance and benefits of the two schemes before making any decisions on transferring.
Speak to an expert about transferring your pension
The advisors we work with understand all the details of teacher pension transfers, the alternatives, and what is more important to prioritise for retirement.
The right pensions transfer expert can answer any questions specific to your situation, such as ‘is it possible to transfer my teacher pension?’ or ‘which pension schemes would I be able to transfer into?’
Speak to one of the pension transfer specialists we work with if you have questions about how to find the best teacher pension transfer or if you’d like to explore transfer alternatives.
Call us on 0808 189 0463 or make an enquiry to get started. We’ll then match you with an advisor who specialises in teacher pension transfers. The best part is that the advice they give is free and without obligation.