Transferring Into or Out of the
Police Pension
A complete, plain-English guide to pension transfers for police officers — including transfers in, transfers out, CETV calculations, risks, and regulatory protections.
Independent explanation of public pension regulations. Not regulated financial advice. Not affiliated with any police force or pension administrator.
Police pension schemes are defined benefit (DB) schemes.
You may transfer previous pension rights into the police scheme (subject to rules) or request a transfer value (CETV) to move benefits out.
Transferring out of a defined benefit pension is a major financial decision. In many cases, it is irreversible.
What Is a Pension Transfer?
A pension transfer means moving pension benefits from one scheme to another, or from a defined benefit scheme to a defined contribution arrangement.
In policing, transfers usually involve bringing previous public sector pension service into the police scheme or requesting a Cash Equivalent Transfer Value (CETV) to move benefits out.
Transfer Pathways
Transferring INTO the Police Pension
Consolidating existing public and private sector pension rights.
Eligible Schemes
You may be able to transfer in service from:
- NHS Pension Service
- Armed Forces Service
- Other Public Sector Schemes
- Certain Private Sector DB Schemes
Key Conditions
- Must be requested within time limits (often within 12 months of joining).
- Be approved under scheme rules and calculated actuarially.
Value Conversion
Transferred service does not always convert year-for-year.
It converts based on value.
Transferring OUT of the Scheme
The CETV Definition
Officers can request a CETV (Cash Equivalent Transfer Value). This is the lump sum value of your future defined benefit pension.
It represents the actuarial cost of providing your pension benefits. You may request a statement of entitlement or a guaranteed CETV (valid for a limited period).
Defined Benefit vs Defined Contribution
Police pensions are defined benefit. Most private pensions are defined contribution.
This shifts risk from the scheme to the individual.
CETV Risk Awareness Indicator
Exchanging guaranteed lifetime income for a lump sum (CETV) shifts investment and longevity risk entirely to you.
The longer your retirement horizon, the more valuable guaranteed DB income becomes. Inflation protection over decades is extremely difficult to replicate in a private fund.
The £30,000 Advisory Safeguard
If your CETV exceeds £30,000: You must obtain regulated financial advice before transferring.
This is a legal requirement. Advisers must be authorised for pension transfer advice. This safeguard exists because most defined benefit transfers are unsuitable.
Why Officers Consider Transferring Out
Common drivers vs systemic guarantees.
Common Reasons
- Ill Health
- Relocation Abroad
- Flexible Drawdown
- Debt Management
- Investment Opportunities
Guaranteed Benefits
- Inflation protection (CPI linked)
- Guaranteed survivor benefits
- Lifetime guaranteed income
- Zero personal investment risk
These are significantly difficult to replicate through private market arrangements.
When Transfers In Make Sense
Transfers into the police pension may increase total pension accrual, simplify retirement planning, and consolidate service.
Transfer Suitability Checklist
Please select relevant indicators above to see a high-level scenario assessment.
Disclaimer: This checklist is for educational purposes only and does not constitute financial advice. Pension transfers are complex and legally regulated. Always seek professional advice once the value exceeds certain thresholds.
Tax Considerations
Transferring out may affect Annual Allowance, Lifetime Allowance positions (historically), advice costs, and inheritance treatment. Transfers must consider total tax efficiency.
Irreversibility
Most pension transfers are irreversible.
Once transferred, you cannot rejoin the defined benefit scheme for those periods of service. This is a critical risk factor.
Transfers and McCloud Remedy
The McCloud remedy may affect CETV calculations, remedy-period benefit values, and transfer timing decisions.
Officers eligible for remedy should understand how legacy vs 2015 accrual affects their potential transfer value before making a decision.
Transfer Queries
Can I transfer my pension into the police pension scheme?
Yes, subject to scheme rules and time limits. Transfers are calculated actuarially and may not convert year-for-year.
Can I transfer out of the police pension?
Yes, but you must request a Cash Equivalent Transfer Value (CETV) and obtain regulated advice if the value exceeds £30,000.
Is it worth transferring out of the police pension?
In many cases, transferring out of a defined benefit pension is high risk because it replaces guaranteed income with investment risk.
What is a CETV?
CETV stands for Cash Equivalent Transfer Value. It is the lump sum value of your defined benefit pension calculated for transfer purposes.
Is financial advice mandatory?
Yes, for transfers above £30,000, regulated advice is legally required.
Final Position
Transferring into or out of the police pension is not a routine administrative task.
It is a structural financial decision. Defined benefit pensions provide rare guarantees in modern employment.
Model Your Exact Pension
Use our Police Pension Calculator to estimate your annual income under the 1987, 2006 or 2015 scheme — including early retirement reductions and McCloud impact.