Are there any other types of transfer?
Other types of transfer include:
These are described in more detail below.
Asset Transfers
Transfers are valued in cash terms but if a transfer between schemes involves an asset such as commercial property, the asset must be valued in cash terms by an appropriately qualified, independent person before the transfer can take place.
This type of transfer normally relates to Self-Invested Personal Pensions (SIPPs) or Small Self-Administered Pension Schemes (SSASs).
Partial Transfers
This has traditionally been most common where a member wants to transfer from a contracted-out scheme to a non-contracted-out scheme and the transferring scheme allows a transfer of excess benefits only.
Members now have a right to take a partial transfer where they have both DB and DC benefits i.e. there is a separate right of transfer in relation to each type of benefit.
Partial transfers are therefore likely to increase with members wanting to take advantage of the new flexible benefits with their AVC funds, whilst leaving their DB funds undisturbed.
The Trustees cannot force a member to transfer all categories of benefits. This is a statutory right therefore the scheme rules would be over-ridden if they have not been amended to allow such a partial transfer.
The right to a statutory transfer in respect of a particular category of benefits only applies if the pension rights have not been crystallised i.e. not already in payment or been designated for the payment of drawdown benefit.
Pension in payment
If a member is already in receipt of a scheme pension and is looking to move it to another provider, the transfer must be on a like for like basis i.e. the type of pension must remain the same, and there are other provisions e.g. the rate of pension normally cannot go down.
All of the pension must be transferred at the same time.A dependant’s pension can also be transferred.
