Local Government Pension Transfer Claims — Were You Advised to Transfer Out of the LGPS?
Nadeem Pervazis a solicitor at Edward & Amaury Solicitors, a law firm authorised and regulated by the Solicitors Regulation Authority. Content is reviewed for legal accuracy and compliance with FCA guidance and SRA conduct standards.
TL;DR — Quick Summary
- ▸The LGPS is one of the UK's largest defined benefit pension schemes — advice to transfer out is almost always unsuitable.
- ▸LGPS members include council workers, school support staff, housing association employees and many others across the public sector.
- ▸Compensation is based on the value of guaranteed benefits given up versus the current fund value — often very substantial.
- ▸If the adviser has since failed, FSCS claims may be available up to £85,000.
- ▸Time limits apply — seek advice promptly.
The Local Government Pension Scheme provides millions of public sector workers with guaranteed, inflation-linked retirement income backed by the government. Advice to transfer out of the LGPS into a SIPP or personal pension was almost always unsuitable. If you were advised to transfer and have suffered losses, you may have grounds for a significant claim.
Quick Answer
Advice to transfer out of the LGPS was almost always unsuitable. If you transferred and suffered a loss, you may have a significant compensation claim. Contact us for a free review — time limits apply.
FCA Priority Area
The FCA has identified DB pension transfer mis-selling — including transfers from public sector schemes like the LGPS — as a major consumer harm. Advisers were required to demonstrate that a transfer was in the member's best interests. For LGPS members, this test could rarely be satisfied.
What the LGPS Provides
Career-average guaranteed income
Based on your earnings throughout your career — payable for life.
CPI index-linking
Annual increases to protect the real value of your pension.
Tax-free lump sum
An optional lump sum on retirement.
Spouse's/partner's pension
A continuing pension for your surviving spouse or civil partner.
Ill-health retirement
Enhanced benefits if health forces you to stop working.
Death-in-service cover
Lump sum for dependants if you die while employed.
Other Public Sector Pension Transfer Claims
The same principles apply to transfers from other public sector schemes. We have dedicated guides for NHS pension transfer claims, Teachers Pension transfer claims, and Civil Service Pension transfer claims.