Business Services Organisation
In this section you will find information regarding the transfer of benefits both in and out of the NIFRS Pension Scheme.
Transfer In forms are available below.
Transfer in request form (NIFRS)
Before submitting the form, please take note of the following:
- Each policy/scheme that you wish us to investigate will require the completion of a separate form.
- Please note that having submitted the SC165, you will be under no obligation to complete any transfer. You will receive, in due course, a pension credit quote which will state the value that your previous pension rights will obtain, as well as a form to sign and return should you wish to complete the transfer.
- If you have any documentation in relation to your previous pension policy/scheme, please provide us with a clear copy of this, as it may help us to process your transfer application more quickly.
- Please be aware that we require all relevant sections of the form to be completed in order to process your request. Failure to complete the form fully may delay your transfer process.
If you wish to transfer your benefits out of the NIFRS Pension Scheme, you must contact your new provider and request that they contact us to request a transfer out valuation.
More detailed information surrounding Transfers can be found by selecting the tabs below:
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Common to Both Transfers In and Out
What Transferring Means
The portability of pensions means that when members come to retire, their benefits can be held in one fund. The NIFRS Pension Scheme can accept transfers from or to most pension schemes, although there are different types of transfer.
A transfer value is a single payment from or to the NIFRS Pension Scheme and is paid by/paid to another pension scheme or arrangement. The transfer value is converted into pensionable service, (or an annual monetary value if transferred into the CARE scheme) which is added to accrued service/current scheme value and therefore reckons for all benefits in the NIFRS Pension Scheme.
Eligibility
There are time limits to transfer from or to the NIFRS Pension Scheme; these are detailed in the below tabs.
Transfers completed on or after 6th April 2006 must be from one of the HMRC registered pension scheme to another. A transfer between two registered pension schemes is called an authorised transfer, also known as a recognised transfer, and no tax charge applies to these transfers.
Responsibilities
The NIFRS Pension Service, employers and employees have specific responsibilities when dealing with transfers from and to the Scheme. These are listed below and must be adhered to.
Employer Responsibilities
It is essential that member’s pension records are kept up to date and necessary forms, in particular, termination documents are completed in full and submitted to NIFRS Pensions timeously. It is also crucial that employers respond to requests for information timeously.
Employers should also make the member aware of their rights to transfer immediately on joining NIFRS Pensions by providing the member with the appropriate Transfer in Form which is available to download at the top of this page.
NIFRS Pension Service Responsibilities
On receipt of a transfer request NIFRS Pensions is required to ensure that all information pertinent to the transfer value calculation is obtained, received or issued and the appropriate action is taken within specific timeframes, including updating the member’s record.
NIFRS Pensions are obliged by the Pensions Act 1995 to supply transfer out information within 3 months of the request.
Employee Responsibilities
The employee is required to request a transfer in or out of the Pension Scheme within the required timescales as detailed in paragraphs and provide the necessary information as required.
Transfer Tables
The NIFRS Pension Scheme, along with other Public Sector schemes, base all transfer calculations on standard factor tables provided by the Scheme Actuary and there are separate tables for men and for women. All pension schemes must now provide a transfer value based on converting the value of a member’s pension rights to a current cash equivalent value.
The member will receive pensionable service strictly in accordance with the actuarial assessment of what that transfer value will buy when transferring to another scheme.
Advice
Unfortunately, HSC Pension Service is unable to offer advice and recommends that independent advice is sought by the member should there be any doubt as to whether a transfer is their best option.
There is no pressure on the member to transfer their benefits even if an enquiry has been made. There is no obligation by the member to complete the transfer in once they have received their estimated pensionable service credit from NIFRS Pensions.
However, NIFRS Pensions cannot cancel a transfer from the NIFRS Pension Scheme to another pension provider once payment has been sent to the new scheme. Equally, the NIFRS Pension Scheme cannot cancel a transfer in once payment has been received.
Scheme members may wish to seek financial advice before deciding on whether to transfer their benefits. NIFRS Pensions cannot offer any advice, however, the following organisations provide information which may be of help:
The Financial Conduct Authority at http://www.fca.org.uk/ or contact:
The Financial Conduct Authority
25 The North Colonnade
London
E14 5HSThe Pensions Regulator at www.thepensionsregulator.gov.uk or contact:
The Pensions Regulator
Napier House
Trafalgar Place
Brighton
BN1 4DWThe Pensions Advisory Service at www.pensionsadvisoryservice.org.uk or contact:
The Pensions Advisory Service
10 South Colonnade
Canary Wharf
London
E14 4PU -
Transferring into the NIFRS Pension Scheme
Types of Transfer IN
There are different types of pension schemes that can be transferred in to the NIFRS Pension Scheme. However, NIFRS Pensions cannot cancel a transfer in for which payment has been received.
Fire Service Schemes outside Northern Ireland
If a member has been working for the Fire Service in England, Wales, Scotland or Isle of Man, they may wish to transfer these benefits to the NIFRS scheme in Northern Ireland.
Public Sector Transfer (Club)
These are public and private sector occupational pension schemes, like the NIFRS Pension Scheme, who are all members of the Public Sector Transfer Club, also known as “the Club”. Other examples of Club schemes are the Local Government Pension Scheme, Civil Service Pension Scheme and Teachers’ Pension Scheme. All schemes within the ‘Club’ calculate transfer values based on standard factor tables and guidance provided by the Scheme Actuary.
Non Public Sector Transfer (Non-Club)
Any pension providers who are not employees of the ‘Club’, are known as ‘Non-Club Schemes’ and include other occupational pension schemes, Section 32 Buy-Out Private Personal Pensions administered by insurance companies, banks etc. and contracted out/in money purchase schemes.
Qualifying Recognised Overseas Pension Schemes (QROPS)
HSC Pension Service can only consider a transfer from an overseas pension scheme which is classed as a Qualifying Recognised Overseas Pension Scheme, approval for which is granted by HMRC (see www.hmrc.gov.uk for more information). HMRC will issue the scheme with an acceptance letter, a copy of which must be provided before any request for an overseas transfer can be considered. Transfer in payments must be made in Pounds Sterling for non EEC countries. Euros are acceptable for EEC employees.
Time limits & Procedures for Transferring IN
There are specific time limits for requesting a transfer in to the NIFRS Pension Scheme depending on the type of the previous pension scheme and the date that the member joins or re-joins the NIFRS Pension Scheme. Normally the transfer would have to be completed within 12 months of joining the scheme. Transfers cannot be completed if the member is over normal retirement age at the time the request is made, and the transfer must be completed by the time the member is within one year of their normal retirement age.
Public Sector Transfer Club
A member has 12 months from joining or re-joining the NIFRS Pension Scheme to request a transfer in from a Public Sector Transfer Club scheme.
Where the member joins or re-joins the NIFRS Pension Scheme and has more than one consecutive pensionable employment, the 12 months’ time limit will apply from the commencement date of the first pensionable employment.
NIFRS Pensions will request a transfer in value from the former Club scheme and send the member an acknowledgement letter. Once a transfer in value is received NIFRS Pensions will calculate a service credit/transfer value and send the member an estimate of this credit along with options forms to be completed and returned.
If the member elects for the transfer in to go ahead, NIFRS Pensions will request payment from the former scheme and when payment is cleared an award calculation is carried out. The member will then be sent a letter from NIFRS Pensions confirming the service credit and the completion of the transfer in.
The member’s age, gender and pensionable pay that the former scheme used in their transfer calculation will be used in NIFRS Pension’s calculation. ‘Club’ calculated transfer values are based on standard factor tables and guidance provided by the Government Actuaries Department (GAD).
Non Public Sector Transfer Club
A member has 12 months from joining or re-joining the NIFRS Pension Scheme to request a transfer in from a Public Sector Transfer Club scheme. Where the member joins or re-joins the NIFRS Pension Scheme and has more than one consecutive pensionable employment, the 12 months’ time limit will apply from the commencement date of the first pensionable employment.
On receiving a transfer request, NIFRS Pensions will send a Transfer In Application letter to the member, which includes:
- a Letter of Authority which the member is required to sign which gives NIFRS Pensions permission to deal with the former provider.
- personal details from the member such as marital status and contact numbers, and;
- details of all pensions that the member wishes to transfer and contact details of the former providers.
The member is required to return the Transfer In application forms to NIFRS Pensions, who will request a transfer value from the former provider. Non club transfers can be complex as former providers may issue a 3 month guarantee from the date of their calculation. So it is imperative that all requested documentation is completed and returned to NIFRS Pensions as soon as possible, so that the transfer can be processed before the 3 month window expires, otherwise we will have to start the process over again.
When NIFRS Pensions has all the relevant information a transfer in value is calculated and an estimate provided to the member along with options forms asking them if they wish to go ahead with the transfer in. The member must make a decision and is recommended to consult an IFA and/or Staff Benefits representative before returning the options forms.
If the transfer in is to go ahead NIFRS Pensions will then request payment from the former pension provider before the end of the guarantee date. This is a very tight schedule to meet within 3 months and in some cases pension providers will only allow one calculation each 12 months. If the guarantee date is not met then the member would then need to wait a further 12 months and the calculation would then be based on their current salary which would not be beneficial to the member.
When a payment is made by the former provider an award calculation is processed by NIFRS Pensions, who will then send a letter to the member confirming the pensionable service credit and confirmation that the transfer is now completed.
For transfers from a Non-Club scheme, calculations are based on the member’s age, gender and salary at start date. A test is undertaken by NIFRS Pensions to ensure the GMP is not more than the transfer value.
Qualifying Recognised Overseas Pension Schemes (QROPS)
A member has 12 months from joining or re-joining the NIFRS Pension Scheme to request a transfer in from a QROPS. Where the member joins or re-joins the NIFRS Pension Scheme and has more than one consecutive pensionable employment, the 12 months’ time limit will apply from the commencement date of the first pensionable employment.
On receiving a transfer request, NIFRS Pensions will send a Transfer In Application letter to the member, which includes:
- a Letter of Authority which the member is required to sign which gives NIFRS Pensions permission to deal with the former provider.
- personal details from the member such as marital status and contact numbers, and;
- details of all pensions that the member wishes to transfer and contact details of the former providers.
The member is required to return the Transfer In application forms to NIFRS Pensions, who will then request a transfer value from the former provider. QROPS transfers can be complex as former providers may issue a 3 month guarantee from the date of their calculation. So it is imperative that all requested documentation is completed and returned to NIFRS Pensions as soon as possible, so that the transfer can be processed before the 3 month window expires, otherwise we will have to start the process over again.
When NIFRS Pensions has all the relevant information a transfer in value is calculated and an estimate provided to the member along with options forms asking them if they wish to go ahead with the transfer in. The member must make a decision and is recommended to consult an IFA and/or staff benefits representative before returning the options forms.
If the transfer in is to go ahead NIFRS Pensions will then request payment from the former pension provider before the end of the guarantee date. This is a very tight schedule to meet within 3 months and in some cases pension providers will only allow one calculation each 12 months. If the guarantee date is not met then the member would then need to wait a further 12 months and the calculation would then be based on their current salary which would not be beneficial to the member.
When a payment is made by the former provider an award calculation is processed by NIFRS Pensions, who will then send a letter to the member confirming the pensionable service credit and confirmation that the transfer is now completed.
For transfers from a QROPS, calculations are based on the member’s age, gender and salary at start date. A test is undertaken by NIFRS Pensions to ensure the GMP is not more than the transfer value.
Joining the NIFRS Pension Scheme
If a member joined the FPS (2007) Section of the NIFRS Pension Scheme before 1st April 2008 the member should have requested a transfer of pension benefits from their former pension provider within 12 months of joining the scheme and be under age 54 at the time the request is made. If the transfer in is from the FPS (2007) scheme of a Fire scheme outside Northern Ireland and the member is in the FPS (2007) scheme in NIFRS, then this transfer credit will usually be on a like for like basis.
If the member joined the NFPS 2007 Section of the NIFRS Pension Scheme on or after 1st April 2008 the member should have requested a transfer within 12 months of joining the scheme and be under age 59 (54 for Modified) at the time the request is made. If the transfer in is from the NFPS 2007 section of a Fire scheme outside Northern Ireland and the member is in the NFPS 2007 scheme in NIFRS, then this transfer credit will usually be on a like for like basis.
If the transfers are from differing sections then the service credit will not result in a like for like transfer in. In such cases an estimate will be sent to the member seeking permission to progress with the transfer in.
If the member is approaching their normal retirement age it is important that NIFRS Pensions receives the transfer details before the member reaches normal retirement age; the transfer cannot be completed if the member is over normal retirement age at the time the request is made, and the transfer must be completed by the time the member is within one year of their normal retirement age.
If the member has not previously been a member of the NIFRS Pension Scheme, they will receive a New Joiner Questionnaire from their employer. This form will have a link to the Transfer Pack which will ask them if they have any pensions from former providers that they wish to transfer in to NIFRS Pension Scheme.
The Options form must be completed and returned to NIFRS Pensions within 12 months of joining the scheme. Alternatively, the member can write to NIFRS Pensions to request a transfer in, stating the name of their former pension provider. This must be done within 12 months of joining the scheme.
Re-joining the NIFRS Pension Scheme
If a member re-joined the NIFRS Pension Scheme before 1st October 2008 after a break in scheme membership, the member must request a transfer of pension benefits from their former pension provider within 12 months of joining the scheme and be under age 54 at the time the request is made.
If the member re-joined the scheme on or after 1st October 2008 after a break in scheme membership of five years or more the member must request a transfer within 12 months of joining the scheme and be under age 54 (59 for Modified) at the time the request is made.
If the member is approaching their normal retirement age it is important that NIFRS Pensions receives the transfer details before the member reaches normal retirement age; the transfer cannot be completed if the member is over normal retirement age at the time the request is made.
When a member re-joins the NIFRS Pension Scheme, they must request a transfer in by writing to NIFRS Pensions within 12 months of re-joining the scheme.
If the transfer in request is from another non Fire Service Registered Occupational Pension Scheme and is not covered under the Club, Non-Club or QROPS schemes and is not completed within 12 months of joining, NIFRS Pensions will base any calculations on age, salary and factors provided by the Scheme Actuary on the date payment is received. However, consideration will be given where NIFRS Pensions is responsible for any delays in the transfer process.
If time limits are not met
If the transfer in request does not meet the time limits, the request will not be accepted. However, if it is confirmed that the member has been denied access to, or information about the NIFRS Pension Scheme, then exceptionally, NIFRS Pensions may be able to allow a late request. NIFRS Pensions will check with the employer to ensure that the member was issued with a Guide to the Scheme when they commenced NIFRS employment.
There is provision in the regulations for NIFRS Pensions to allow discretion to extend the time limits, but this can only be used in exceptional circumstances.
Issues Affecting the Membership Credit
Employee’s transferring in may find that the membership credit in the NIFRS Pension Scheme bears no resemblance to the membership in their former scheme because of the difference in benefits payable by the NIFRS Pension Scheme.
The most common reasons for reduced membership credits on transferring are:
- where a female member’s previous pension scheme did not provide widower’s cover entitlement on all previous membership;
- where any period of previous membership provided for a lesser lump sum than given by the NIFRS Pension Scheme;
- where the previous pension scheme made retirement benefits payable at a normal retirement age later than the NIFRS Pension Scheme which allows you to retire at 55/60.
If a member is transferring benefits from another scheme into the 2015 CARE Scheme they will be attributed with a pensionable earnings credit. This credit will normally be associated with the member’s first Scheme year’s actual pensionable earnings and used to calculate the amount of pension they have built up in that year.
Member Leaves / Opts out before the Transfer In is Complete
If payment has been received prior to the member leaving or opting out of NIFRS pensionable employment, the transfer in will continue. If the transfer in is at the estimate stage at the time of the member leaving, the member can choose to continue with the transfer, however, if the member is opting out of the NIFRS Pension Scheme the transfer in will be cancelled.
Interest
If a transfer in is not paid by the previous pension scheme provider within 6 months of the member’s request, the former scheme is liable for payment of interest and should include this with the transfer payment. Any interest will be excluded from the transfer in value from a ‘Club’ scheme but will be treated as part of the transfer value where the transfer is from a ‘Non-Club’ or QROPS scheme.
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Transferring out of the NIFRS Pension Scheme
Types of Transfer Out of the NIFRS Pension Scheme
There are different types of pension schemes that can be transferred out of the NIFRS Pension Scheme. These are as follows:
Fire Service Schemes outside Northern Ireland
If a member has been working for NIFRS they may wish to transfer these benefits to the HSC Schemes for England & Wales, Scotland or Isle of Man.
Public Sector Transfer (Club)
These are public and private sector occupational pension schemes, like the NIFRS Pension Scheme, who are all members of the Public Sector Transfer Club, also known as “the Club”. Other examples of Club schemes are the HSC, Local Government Pension Scheme, Civil Service Pension Scheme and Teachers’ Pension Scheme. All schemes within the ‘Club’ calculate transfer values based on standard factor tables and guidance provided by the Scheme Actuary.
Non Public Sector Transfer (Non-Club)
Any pension providers who are not employees of the ‘Club’, are known as ‘Non-Club Schemes’ and include other occupational pension schemes, Section 32 Buy-Out Bond policies, personal pensions administered by insurance companies, banks etc. and contracted out/in money purchase schemes.
Qualifying Recognised Overseas Pension Schemes (QROPS)
NIFRS Pensions can only consider a transfer to an overseas pension scheme which is classed as a Qualifying Recognised Overseas Pension Scheme (QROPS), approval for which is granted by HMRC (see www.hmrc.gov.uk for more information). HMRC will issue the scheme with an acceptance letter, a copy of which must be provided before any request for an overseas transfer can be considered. Transfer in payments must be made in Pounds Sterling for non EEC countries. Euros are acceptable for EEC employees.
There are specific time limits for requesting a transfer out of the NIFRS Pension Scheme depending on the type of the new pension scheme.
NIFRS Pensions is obliged by the Pensions Act 1995 to supply transfer information with 3 months of the request. It is crucial that employer’s respond to requests for information timeously.
FIRE Service Schemes outside of Northern Ireland
There is no time limit to transfer out to another Fire Scheme outside Northern Ireland provided the member joined within one year of leaving the NIFRS Pension Scheme. NIFRS Pensions will try to meet any request for a transfer out but would expect an application to be received no later than 1 year prior to the employee’s normal retirement age.
If the transfer out is to England, Wales or Scotland, NIFRS Pensions will pay the transfer out value immediately using standard factor tables at the date the transfer out request was received. membership before transferring.
NIFRS Pensions will notify the receiving scheme of the membership being transferred out by sending them a confirmation letter.
If it is received outside the 3-month guarantee period NIFRS Pensions recalculate the transfer out value at the date the request for payment was received and pay that amount to the new scheme.
Public Sector Transfer Club
If a member has at least 2 years scheme membership they can apply for a transfer out at any time before their normal retirement age. Employees should note that although NIFRS Pensions have no time limits for transferring out benefits, their new provider may have time limits to transfer benefits into their scheme.
If a member has less than 2 years scheme membership they must join their new pension scheme within 12 months of leaving the NIFRS Pension Scheme and must apply for a transfer within 12 months of joining their new scheme.
NIFRS Pensions will try to meet any request for a transfer out but would expect an application to be received no later than 1 year prior to the employee’s normal retirement age.
Non Public Sector Transfer Club
If a member has at least 2 years scheme membership they can apply for a transfer out at any time before their normal retirement age. Employees should note that although NIFRS Pensions has no time limits for transferring out benefits, their new provider may have time limits to transfer benefits into their scheme.
If a member has less than 2 years scheme membership they must join their new pension scheme within 12 months of leaving the NIFRS Pension Scheme and must apply for a transfer within 12 months of joining their new scheme.
NIFRS Pensions will try to meet any request for a transfer out but would expect an application to be received no later than 1 year prior to the employee’s normal retirement age.
Qualifying Recognised Overseas Pension Schemes (QROPS)
If a member has at least 2 years Scheme membership they can apply for a transfer out at any time before their normal retirement age. Employees should note that although NIFRS Pensions has no time limits for transferring out benefits, their new provider may have time limits to transfer benefits into their scheme.
If a member has less than 2 years scheme membership they must join their new pension scheme within 12 months of leaving the NIFRS Pension Scheme and must apply for a transfer within 12 months of joining their new scheme.
NIFRS Pensions will try to meet any request for a transfer out but would expect an application to be received no later than 1 year prior to the firefighter’s normal retirement age.
A transfer out application should be received from the new pension arrangement/ provider. This gives NIFRS Pensions important information about the scheme the benefits are transferring to, as well as confirming that the scheme is able to accept transfers from the NIFRS Pension Scheme.
Transfer Out Process
When all required information has been received, NIFRS Pensions calculate the transfer out value by converting the value of the member’s pension rights to a current cash equivalent value in accordance with the NIFRS Pension Scheme regulations, using factors and guidance provided by the Scheme Actuary.
Pensions increase (PI) is applied to the transfer out value to take account of any changes in the ‘cost of living’ from the date the member left the NIFRS Pension Scheme to the date the transfer out value is calculated.
Details of the provisional transfer out value are sent to the new scheme with an options form – this is a discharge form that must be completed by the member and their new scheme if they wish the transfer out to proceed. The transfer out value is guaranteed for 3 months in accordance with the Pensions Act 1995. (QROPS should not be guaranteed for 3 months, however, NIFRS Pensions apply this administratively).
If the option form is returned within 3 months, NIFRS Pensions will pay the provisional amount quoted on the estimate. If the option form is returned outside the 3-month guarantee period, we will recalculate the transfer out value and pay the new amount to the receiving scheme.