Deferred Member

Transferring Out

You can transfer the value of your pension benefits to another approved pension such as a: 

  • New employer's scheme 
  • Personal pension 
  • Stakeholder pension 

You can choose to transfer at any time before you retire. 

The transfer value is the cash equivalent of your deferred pension. This amount will be paid to your new pension provider, who will advise you of the benefits you get by making the transfer. The amount paid is calculated by the Trustees on the advice of the Actuary. 

If you are considering transferring your benefits out of the Fund we recommend that you seek suitable independent financial advice as this is an important decision and once the transfer is completed it cannot be reversed. 

Legislation requires us to undertake a number of checks before we can complete a transfer, this can cause the process to take some time to complete. 

Important information for Members of the TfL Pension Fund considering transferring benefits.
Please take time to read the following which will help you protect your valuable TfL pension benefits

Pension Scams  

  • Since April 2015 there are more choices about how people can access their pension than in the past. Please be aware as scammers know this and will try to lure Fund members with promises of upfront cash and one-off ‘deals’ with guaranteed high returns 
  • Pension scam victims lose an average of £91,000 according to the Financial Conduct Authority 
  • Watch out particularly for people contacting members out of the blue or adverts claiming to offer free pension reviews or no-obligation consultations 
  • We recommend members conduct their own checks on the legitimacy of their potential new pension provider 
  • A transfer to a pension arrangement which is not a registered pension arrangement will make the transfer value an unauthorised payment. This means the member will have a personal tax liability of 55 per cent of the payment. In addition, the Fund will also have tax liabilities and therefore reserves the right to contact HM Revenue & Customs (HMRC) and/or the Financial Conduct Authority regarding the status of a receiving arrangement before making any transfer payment 
  • We recommend that members familiarise themselves with these documents in order to protect their own interests. Additional information can be found by inserting ‘Pension scams’ into an internet search engine 
  • Should you have any concerns please do not hesitate to contact the Fund office 

For further information, please contact the Fund Office 

If you have left service or opted out of the Fund and have an entitlement to a deferred pension, you can transfer the value of your deferred pension to an approved pension arrangement.

Whether a transfer is suitable will depend on your individual circumstances and objectives. For most members legislation requires that they get regulated financial advice before a transfer can proceed.

The transfer value is guaranteed for 3 months, if you decide to transfer but fail to provide all of the information and fully completed forms requested within the 3 month guarantee period, the transfer value will need to be recalculated.

We do not make any charges, however depending on the type of pension arrangement you are transferring to, the new provider may apply set up and ongoing management charges.

We won’t transfer to an overseas scheme unless it’s a Recognised Overseas Pension Scheme (ROPS). So we’ll check this before completing the transfer.

Our Guide to Transferring Benefits Out provides further information.