What are statutory transfer rights?
Since April 2015 each type of benefit has been a separate category with separate transfer rights.
DB Benefits
A member has a statutory right to transfer their benefits if they cease accrual and apply to transfer one year or more before the Scheme Normal Retirement Age.
DC Benefits
A member with DC benefits has a statutory right to transfer the value of their benefits at any time.
One of the impacts of this legislative change relates to members of a DB scheme who have paid Additional Voluntary Contributions (AVCs). Previously all the benefits had to be transferred at the same time but now, the AVCs are classed as DC benefits so two separate benefit rights exist. The member can now transfer the AVCs and leave the DB benefits in place.
NB: From 6 April 2015, changes under the Pensions Schemes Act 2015 stopped transfers from unfunded public service pension schemes, such as the Teachers’ Pension Scheme, to pension schemes, whether in the UK or abroad, based on DC or flexible access arrangements.
