How long does a DB pension transfer take?

A defined benefit (DB) pension transfer can take several months, and there is no fixed timescale. The law sets the outer limits: up to three months for the scheme to set your transfer value's guarantee date, three months from that date for you to apply, and normally six months from that date for the scheme to pay.

Why a DB transfer takes longer than a DC transfer

Moving a defined contribution (DC) pot from one provider to another is mostly administration. A DB transfer is different. You would be giving up a guaranteed income for life, so the law builds in steps to protect you:

• the scheme has to work out a cash equivalent transfer value (CETV) on its actuarial basis;
• if your safeguarded benefits are worth more than £30,000, you must take regulated advice before you can transfer;
• the scheme has to carry out checks for signs of a scam before it releases the money.

Each of those takes time, and some of the time limits run in sequence. Understanding them helps you plan, so that you aren't caught out by a guarantee running out. It isn't a reason to rush. The FCA's starting assumption is that a DB transfer is unlikely to be suitable for most people, and the FCA's page on defined benefit pension transfers explains why.

Not every DB pension can be transferred to a DC pension. Unfunded public-sector schemes, such as the NHS, Teachers', Civil Service, Police, Firefighters' and Armed Forces schemes, have not allowed this since April 2015. The Local Government Pension Scheme is funded and can. See our guide to public-sector pensions.

Stage 1: Asking for your CETV (up to three months)

You start by asking your scheme in writing for a statement of your cash equivalent transfer value.

Under regulation 6 of the Occupational Pension Schemes (Transfer Values) Regulations 1996, the trustees must set a guarantee date within three months of your request, and send you the statement within 10 working days of that guarantee date. If they can't meet the three months for reasons beyond their control, the period can be extended to a maximum of six months from your request. MoneyHelper summarises this as the scheme having up to three months to send it to you.

You don't have a right to more than one statement in any 12 months, unless the scheme rules or the trustees allow it, and you may be charged for an extra one.

Before you ask, it is worth checking whether your scheme lets you transfer at all, and whether there's a time limit. The legal right to a transfer value for DB benefits normally ends one year before the scheme's normal pension age (section 95 of the Pension Schemes Act 1993), although some schemes allow transfers later.

Stage 2: The three-month guarantee period

Once you have the statement, the clock starts. Section 95 of the Pension Schemes Act 1993 says that, to use your statutory right, you must apply to transfer in writing within three months beginning with the guarantee date shown on the statement.

That three months is the window in which the figure is guaranteed. If you need regulated advice, that advice normally has to be completed, and the adviser's confirmation sent to the scheme, within the same window.

If the three months pass before you apply, the guarantee lapses. You would need to ask for a new CETV, which could be higher or lower, and the scheme may charge for it if it is within 12 months of the last one. MoneyHelper notes that if the value has changed and you need advice, your adviser will usually need to check that their recommendation still applies to the new figure.

This is why MoneyHelper suggests it is often a good idea to find a financial adviser before you request your CETV, so the guarantee doesn't expire while you are still looking.

Stage 3: Finding a regulated adviser

If the transfer value of your safeguarded benefits is more than £30,000, the scheme must check that you have taken appropriate independent advice before it can transfer. The advice must come from an FCA-authorised firm with the permission to advise on pension transfers and opt-outs, as The Pensions Regulator (TPR) explains in its guidance on dealing with transfer requests. Our guide to safeguarded benefits explains what counts.

Not every financial adviser holds that permission, so finding one can take a little time. You can check a firm on the FCA Register. Never deal with a firm that contacted you out of the blue. The FCA's ScamSmart site explains the warning signs.

Since 1 October 2020, firms generally cannot charge contingent fees for DB transfer advice (fees that are only paid if you transfer), apart from limited exceptions for serious ill health and serious financial hardship. Ask about fees at the start. If your employer has written to you offering an enhanced transfer value or another incentive to transfer, the employer will usually have to pay for the advice.

Stage 4: The advice itself

Regulated advice on a DB transfer has several parts, and it is the stage where the time varies most.

Abridged advice (optional)

Some firms offer abridged advice first. It is a shorter stage that can only conclude that you should not transfer, or that it is unclear and full advice is needed. It can never recommend a transfer. If it concludes "don't transfer", the process ends there, unless you choose to go on to full advice.

Full advice

Under the FCA's rules in COBS 19.1, full advice typically involves:

• A fact find. The adviser collects details of your income, spending, other pensions and savings, health, family and plans for retirement. Your attitude to investment risk is assessed.
• Gathering scheme information. The adviser needs your CETV statement, benefit statement and scheme booklet, and often asks the scheme for extra details, such as how your pension increases, the spouse's pension and early retirement terms. Waiting for these is a common delay.
• An appropriate pension transfer analysis (APTA) and a transfer value comparator (TVC). The TVC compares your CETV with an estimate of what it would cost to replace your DB income on the open market.
• A personal recommendation. The firm starts by assuming that a transfer will not be suitable. The advice must be given or checked by a qualified pension transfer specialist, and you'll receive a written suitability report.

If the recommendation is to transfer, the adviser will confirm to the scheme, in the required form, that you've received appropriate independent advice.

Stage 5: Applying, and the scheme's scam checks

To go ahead, you send the scheme your written application, the transfer forms and the adviser's confirmation, all within the three-month guarantee window. The receiving pension provider also has to accept the transfer and may carry out its own checks.

Your DB scheme then has to carry out due diligence under the Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021, which came into force on 30 November 2021. Where the receiving scheme is, for example, a public service pension scheme or an authorised master trust, the checks are limited to confirming that. For other transfers, the trustees look for red flags and amber flags.

Red flags

A red flag means the transfer cannot go ahead. Red flags include:

• not providing information the trustees have asked for, or not providing evidence of a required MoneyHelper appointment;
• advice or arranging by someone who isn't authorised by the FCA;
• the request following unsolicited contact, such as a cold call;
• being offered an incentive to transfer (this does not include an incentive from your own scheme's trustees or employer);
• being, or feeling, pressured to transfer.

Amber flags

Amber flags are concerns that mean the transfer can go ahead only after you've taken guidance. MoneyHelper says they might include the receiving scheme having unusually high or unclear charges, unregulated, high-risk or overseas investments, an unclear or unusual structure, or an unusual rise in transfers to the same scheme or involving the same adviser.

If an amber flag applies, you must book a free Pension Safeguarding Guidance appointment with MoneyHelper, using the link your scheme sends you. MoneyHelper says you can't book one any other way. After the appointment you receive proof that you attended, which you send to the scheme if you still want to transfer. That adds time, but it is an important protection.

Stage 6: The six-month deadline to pay

Under section 99 of the Pension Schemes Act 1993, once you have applied, the trustees must carry out the transfer within six months beginning with the guarantee date on your statement. TPR can extend that period in certain circumstances, and it does not apply where, for example, the advice check has not been completed or the 2021 conditions are not met.

MoneyHelper says that once you confirm, a transfer often takes between two and six weeks, but the provider has up to six months to act on your request. If your scheme is slow, you can complain, first to the scheme and then, if you need to, to The Pensions Ombudsman.

Common causes of delay

Every case is different, and there is no typical overall timescale we can give you. These are some of the things that commonly slow a DB transfer down:

• Scheme administration. Some schemes take most of the three months allowed to produce a CETV, especially when they are busy.
• Missing scheme information. Advisers often need details that aren't on the CETV statement, and each request can add weeks.
• Finding an adviser. A firm with the pension transfer permission may not be able to start straight away.
• Your own paperwork. Identity checks, signed forms and evidence for the scam checks all need to come back promptly.
• The guarantee running out. If the three months pass before you apply, you start again with a new CETV.
• Scam checks. An amber flag means a MoneyHelper appointment before the transfer can proceed. A red flag stops it.
• The receiving scheme. The new provider has its own acceptance checks and may ask for more information.

Our pension transfer checklist lists the documents worth gathering, and our guide to pension scams explains why the checks matter. Be wary of anyone who offers to make a DB transfer happen faster by skipping steps.

Frequently asked questions

How long does a defined benefit pension transfer take?

There's no fixed timescale, and it can take several months from start to finish. The legal limits are: up to three months for the scheme to set the guarantee date for your CETV, three months from the guarantee date for you to apply, and six months from the guarantee date for the scheme to pay.

How long does a scheme have to provide a CETV?

The trustees must set the guarantee date within three months of your request and send the statement within 10 working days of that date. If there are delays beyond their control, this can be extended to a maximum of six months from your request.

What happens if my CETV guarantee runs out?

If you don't apply in writing within three months of the guarantee date, the guaranteed figure lapses. You would need a new CETV, which could be higher or lower, and your adviser may need to check the advice still applies.

Why has my pension transfer been delayed?

Common reasons include waiting for scheme information, identity or paperwork checks, and the scam checks introduced in 2021. If your scheme finds an amber flag, you'll need a MoneyHelper Pension Safeguarding Guidance appointment before the transfer can go ahead.

Do I need advice before transferring a DB pension?

Yes, if the transfer value of your safeguarded benefits is more than £30,000. The advice must come from an FCA-authorised firm with the pension transfer permission, and the FCA's starting assumption is that a transfer is unlikely to be suitable for most people.

For free, impartial guidance, contact MoneyHelper. If you also have defined contribution pensions and are 50 or over, you can book a free Pension Wise appointment.

If you'd like to understand how the DB transfer process and the advice stages work, you can book a free, no-advice chat. It is general information, not advice.