Paragraph F.3 Applications for transfer value payments
United Kingdom
A member who has applied for and received a statement of entitlement under rule F.2 may apply in writing to the Scheme administrator for a transfer value payment to be made.
On making such an application a member becomes entitled to a payment of an amount equal, or amounts equal in aggregate, to the amount specified in the statement of entitlement (or such other amount as may be payable by virtue of paragraph (10)).
In these Rules such a payment is referred to as “the guaranteed cash equivalent transfer value payment”.
An application under paragraph (1) must be made before the end of the period of 3 months beginning with the guarantee date, and the payment must be made no later than—
six months after that date, or
if it is earlier, the date on which the member reaches pension benefit age.
The application must specify the pension scheme or other arrangement to which the payment or payments should be applied.
An application by a person who is entitled to apply for a guaranteed cash equivalent transfer value payment under Chapter 4 of Part 4 of the Pension Schemes Act 1993 may only be made before—
the beginning of the period of one year ending with the date on which the member reaches pension benefit age, or
the end of the period of 6 months beginning with the day after that on which the member’s pensionable service ends,
whichever is the later.
This is subject to paragraph (7).
An application by a person who is not entitled to apply for a guaranteed cash equivalent transfer value payment under Chapter 4 of Part 4 of the Pension Schemes Act 1993 may only be made before the expiry of the period of one year beginning with the day on which the applicant ceases to be an active member of the Scheme.
This does not apply if paragraph (7) applies to the application.
An application for a transfer value payment to be made under the public sector transfer arrangements may only be made—
before the first anniversary of the day on which the member becomes eligible to be an active member of the scheme to which the transfer is to be made, and
before the member reaches pension benefit age.
The Secretary of State may direct that any time limit applying to an application under paragraph (1) should be extended if he considers it reasonable to do so in the circumstances.
An application under this rule may be withdrawn by notice in writing, unless an agreement for the application of the whole or part of the guaranteed cash equivalent transfer value payment has been entered into with a third party before the notice is given.
If the payment is made later than six months after the guarantee date, the amount of the payment to which the member is entitled must be increased by—
the amount by which the amount specified in the statement of entitlement falls short of the amount it would have been if the guarantee date had been the date on which the payment is made, or
if it is greater and there was no reasonable excuse for the delay in payment, interest on the amount specified in the statement of entitlement, calculated on a daily basis over the period from the guarantee date to the date when the payment is made at an annual rate of one per cent. above the sterling 3 month London interbank offered rate.
Notes on Schedule 1
Modifications
- C1
Schs. 1-3 modified (14.7.2026 for the tax year 2014-15 and subsequent tax years) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026 (S.I. 2026/673), regs. 1(2), 10