What rights do I have to transfer my pension?

You generally have a right to transfer your pension up until a year before you retire.

You can transfer it into:

• your new employer's scheme (though they do not have to accept it), or
•  a personal pension.

You can't get your hands on the cash. It can only be transferred into another pension scheme.

The value of a money purchase pension is straightforward. If you keep it with your previous employer's scheme they are entitled to deduct some administrative expenses, but otherwise it will just grow in line with the scheme as a whole.

The value of a salary related scheme is far from straightforward. The scheme actuary will have to work out what is called the 'cash equivalent transfer value'.

This is the money you would need to invest now to get the benefits that would be provided by your deferred pension if you kept your money in the scheme.

The precise value may vary between schemes as they can make different assumptions, but there are rules that limit this variation.

If the scheme is poorly funded the trustees are allowed to offer you a reduced value, or the choice of keeping the pension with them.

Trustees can also get permission from the Pensions Regulator for permission to delay transfer payments.

As with a deferred pension, the part of your pension in a contracted-out scheme that is meant to replace the State Second Pension is treated differently from the rest. It may be harder to transfer this into a new scheme.

This is a complex area, and you may need professional advice.

There's more about deferred pensions on the OPAS website or download the FSA guide to the risks of occupational pension transfers.