Deciding whether to transfer out of the LGPS (NI) is a serious financial decision. Your pension with us is a guaranteed income at retirement. If you transfer your defined benefit pension to another type of scheme you will lose this guarantee, along with other Scheme benefits such as annual inflationary pension increases and guaranteed dependants’ benefits.
Transferring your pension – Video Transcript
Read transcript (87KB, PDF)NILGOSC is committed to ensuring that all scheme members hold on to their hard-earned pension. To see our pledge to combat pension scams, please visit Our pledge to combat pension scams.
Your LGPS (NI) pension is one of the most valuable assets you own
Pension scammers will do whatever it takes to get their hands on your savings and enjoy your retirement. Sadly, the last decade has seen an increase in pension companies being formed to defraud the public of their pension savings, by encouraging them to transfer their pension saving to unsuitable or bogus schemes.
According to the Pensions Scams Industry Group (PSIG) victims of pensions scams report receiving cold or unsolicited calls, offers of free pension reviews, offers of upfront cash and promises of high rates of returns on investments, as warning signs of a scam. You may even be introduced to these companies by a friend or family member who is also unknowingly being scammed. You should be very wary of a scheme offering to help you release cash from your pension before you’re 55. This is known as pension liberation and is almost certainly a scam which will result you having to pay a tax bill of 55% plus other charges, and you could lose your entire pension pot. Once you’ve transferred your money into a scam, it’s too late.
How can I protect myself from pension scammers?
Step 1: Is the offer unexpected?
Legitimate pension providers are highly unlikely to contact you out of the blue about your pension. Be wary of free pension review offers and/or promises of high/guaranteed returns.
Step 2: Have you checked who you’re dealing with?
The Financial Conduct Authority’s (FCA) website has a Financial Services Register you can check to make sure that anyone offering you advice or services is authorised to do so.
A firm pretending to be an authorised firm is known as a ‘clone firm’ and may have a clone website that looks exactly like the real deal. Tip: double check their contact details against the register and see if they match. Always ensure a firm is FCA-authorised or you won’t be protected by the Financial Ombudsman Service or Financial Services Compensation Scheme if something goes wrong.
Website: register.fca.org.uk Phone: 0800 111 67 68
Step 3: Stop and think – are you being rushed or pressured?
Pressure to act quickly or you will miss out is often a warning sign. Take your time to make all the checks you need and remember, if it sounds too good to be true, it probably is.
Step 4: Should you seek impartial advice or guidance?
MoneyHelper
Free and impartial information and guidance available online, over the phone and via webchat.
Website: Moneyhelper.org.uk Phone: 0800 011 3797
Financial advisers
If you can, it’s a good idea to invest in speaking to a financial adviser. Often large amounts of money are at stake and they will be able to help you make the right decision for you. Tip: check any adviser you choose to use is regulated by the FCA.
Stop! Think Fraud
Learn more about how to spot and avoid scams.
Website: stopthinkfraud.campaign.gov.uk