Transfers to DC schemes
Individuals in defined benefit (DB) schemes, such as the Scheme, who are at least one year away from their scheme’s Normal Retirement Age, have the right to transfer their pension benefits into another approved arrangement.
Whilst individuals with DB pension benefits may be attracted to the new flexibilities that are now available in DC arrangements, there are potential disadvantages in transferring benefits out of a DB pension scheme. For example your future pension income cannot be predicted with any certainty if you transfer to a DC arrangement. This is why individuals must obtain independent financial advice from an authorised adviser before they can transfer benefits from a DB scheme to a DC scheme.