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. From the police schemes, the receiving scheme cannot be a defined contribution or other flexible-benefit arrangement (Pension Schemes Act 1993, s.95(2A), in force since 6 April 2015).
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 would shift risk from the scheme to the individual. For police scheme members the swap is not available: since 6 April 2015, transfers out of unfunded public service defined benefit schemes can only go to schemes that do not provide flexible benefits (Pension Schemes Act 1993, s.95(2A)). The comparison still matters if you are bringing other pension rights in.
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
The £30,000 advice rule applies to moves into flexible benefits, which the police schemes cannot make.
Pension Schemes Act 2015 s.48 requires a scheme to check that a member with safeguarded benefits worth more than £30,000 has taken appropriate independent advice before moving into flexible benefits (SI 2015/742, reg 5). Police schemes cannot transfer to flexible benefits at all (Pension Schemes Act 1993, s.95(2A)), so for a permitted transfer to another defined benefit scheme advice is not legally required. An FCA-authorised adviser can still compare the two schemes for you.
Why Officers Consider Transferring Out
Common drivers vs systemic guarantees.
Common Reasons
- Ill Health
- Relocation Abroad
- New Employer's DB Scheme
- Consolidating Service
- Drawdown or investing it yourself: not permitted (s.95(2A))
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. Consider regulated financial advice before any transfer decision.
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?
Only to a scheme that does not provide flexible benefits, such as another defined benefit scheme. Since 6 April 2015 the law has barred transfers from unfunded public service defined benefit schemes, including the police schemes, to defined contribution or other flexible-benefit arrangements (Pension Schemes Act 1993, s.95(2A)). You start by asking the administrator for a Cash Equivalent Transfer Value (CETV).
Is it worth transferring out of the police pension?
A transfer to a defined contribution pension is not allowed from the police schemes. A permitted transfer, for example to another defined benefit scheme, is still a major and usually irreversible decision, so compare what each scheme would pay and consider regulated advice.
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?
The legal requirement to take appropriate independent advice where safeguarded benefits are worth more than £30,000 (Pension Schemes Act 2015, s.48; SI 2015/742, reg 5) applies to moves into flexible benefits, which police scheme members cannot make. For a permitted transfer to another defined benefit scheme it is not a legal requirement, but advice from an FCA-authorised adviser is still sensible.
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.
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