Members have the option to transfer some or all of their benefits out of the Fund to another provider, but they could be worse off if they do.
There are a number of resources available to members to help them make this decision:
Please encourage your clients to use these and think carefully before they opt out and/or get a guaranteed transfer quote online.
How to transfer
Members may decide that they would like to transfer some, or all of their Fund benefits into another pension arrangement. Members cannot change their mind once they have transferred, so they may reach out to you for independent financial advice.
A step by step guide to transferring benefits
Here’s an idea of the typical steps that need to be taken – you can also see what the member needs to provide, and when and how to provide them.
- Actions for the member
- Actions for us, the administrator
Opt out of the Fund
If they still work at the bank, the member will need to leave or ‘opt out’ of the Fund first, to become a deferred member. It can take up to two months to opt out.
Get a quote – guaranteed for 3 months*
Only a member can get a transfer value quote. It can’t be done on their behalf. The quickest way for a member to get a quote is to log into their pension record. If they don’t have access to a computer, they can contact us and we’ll send a transfer pack in the post.
*Until a member has opted out, transfer quotes are not guaranteed. Once opted out, transfer quotes are guaranteed for 3 months only. Members can only request one quote in a 3-month period.
Do the paperwork
Complete and post the relevant forms and ID back to us at least 3 weeks before the transfer value guarantee deadline (or 6 weeks before if the member is transferring APeCs and/or AVCs).
We’ll process the transfer request
If we receive completed paperwork 3/6 weeks before the guarantee deadline. If we receive paperwork after this, we can’t guarantee that we’ll be able to process the request before the transfer quotation expires.
How long will it take?
Once we’ve received completed paperwork, it will take around 15 working days to complete the transfer (or between 4 and 6 weeks if the member is transferring any APeCs and/or AVCs).
Did you know?
Pensioners receiving a pension from the Plan are not normally allowed to transfer.
If a member is eligible to transfer out, they also usually have the option to transfer just part of their pension. This option was introduced by the Trustee from 1 April 2019.
If a member is allowed to transfer part of their pension, they:
- must transfer all their guaranteed pre-1997 benefit (GMP)
- must transfer all their Additional Pension Contributions (APeCs), if they have any
- must transfer at least 50% of their total guaranteed transfer value (not including any APeCs)
- cannot have already transferred out part of their pension from the Fund.
Examples of when a member wouldn’t be able to take a partial transfer
- they have taken one already
- they only have GMP benefits
- a pension lien applies (because a member has defrauded the Bank), so a creditor has been granted a financial interest in the benefits.
Members can use a tool on ePA that gives them an idea of what transferring out some of their benefits could mean for their regular income in retirement. This is how they can access this tool:
- Request a transfer quote
- Go to quote history
- Click explore partial transfers
APeCs/AVC on transfer
Members can transfer their APeCs out of the Fund. If a member decides they would like to transfer their APeCs out of the Fund, they have two options.
They can choose to:
- only transfer the money in their APeCs pot, and keep their main benefits in the Fund, or
- transfer the money in their APeCs pot, as well as part or all of their main benefits in the Fund.
If members want to transfer out of the Fund, they may want to run a retirement and transfer quote first to explore the effects of transferring.