Only members of the funded DB schemes can transfer their benefits

Ministers can reduce the CETV if the benefits are being moved to a scheme with flexible benefits, if they feel the transfer will increase the risk faced by the existing scheme.

The transfer club allows a member to move into another public scheme, the following rules:

• The member is treated as if they had been in the new employer’s scheme since joining the previous In other words, the member receives broadly equivalent credits when they transfer their pensionable service to a new scheme, regardless of any increase in salary.
• The member’s benefits are based on their salary in the new scheme and their total service in both
• The receiving scheme will supplement the transfer in to provide benefits on this

The equivalent credits that are awarded in the receiving scheme are calculated as follows:

• The transferring scheme values the employee’s accrued benefits and produces a cash equivalent transfer value (CETV);
• The receiving scheme uses the same actuarial assumptions and converts the CETV into added years in the new scheme;
• This calculation takes into account differences in the normal pension age and the benefit structure of each scheme;
• As a result, the added years credited in the receiving scheme could be different to the number of years of pensionable service completed in the transferring