The UK DB pension transfer process has 6 stages: (1) request CETV from scheme administrator (3-12 weeks), (2) engage FCA-authorised Pension Transfer Specialist for advice (2-6 weeks), (3) receive Transfer Value Comparator (TVC) report (1-3 weeks), (4) make transfer decision and complete cooling-off period (mandatory 14 days), (5) open receiving SIPP and submit transfer paperwork (1-2 weeks), (6) scheme administrator transfers funds and confirms (4-12 weeks). Total: 4-12 months typically. CETV statement is valid for 3 months only — if the process takes longer, you may need a new CETV.
Stage 1 — Request your CETV statement
Contact the scheme administrator. This is the company or trust running your DB pension — typically the employer's pensions team or a third-party administrator like XPS, Buck, Hymans Robertson, Mercer.
What to request: "I formally request my Cash Equivalent Transfer Value statement under my statutory right (Pension Schemes Act 1993 / 2015)."
Schemes must provide this free once per 12-month period. Additional requests may incur fees.
Timeline: scheme must respond within 3 months. In practice, well-administered schemes provide statements within 4-8 weeks.
Stage 2 — Engage an FCA-authorised Pension Transfer Specialist
For DB transfers over £30,000, you must obtain regulated advice from an FCA-authorised firm. Two routes:
- Find an adviser yourself: use the FCA Register to verify an adviser. Look for "Pension Transfer Specialist" or "DB to DC Transfer" specialism. Many IFAs no longer advise on DB transfers due to regulatory cost; specialist firms exist.
- Through your existing IFA: if you have a relationship, they may refer you to a partner firm specialising in DB transfers.
Cost: typical DB transfer advice fee ranges £3,000-£10,000 depending on complexity. The fee is paid whether the transfer proceeds or not.
Timeline: initial consultation 1-2 weeks; full advice production 2-6 weeks.
Stage 3 — Receive the Transfer Value Comparator (TVC) report
The TVC is the key document. It mathematically compares:
- Option A: stay in the DB scheme. Project the pension value over the rest of your life.
- Option B: take the CETV, invest it, draw equivalent income. Project the SIPP value over the rest of your life.
The TVC includes:
- Critical yield — the investment return needed to match the DB pension.
- Stress-test scenarios — what happens if returns are lower than expected.
- Inflation analysis — how each option handles inflation.
- Spousal benefit comparison — DB joint life vs SIPP inheritance flexibility.
- Tax analysis — including post-2027 IHT considerations.
- Recommendation — adviser's view on whether transfer is suitable.
Stage 4 — Make decision + complete cooling-off
You receive the TVC + adviser recommendation. Three options:
- Accept the transfer recommendation — proceed.
- Reject the transfer recommendation — stay in DB.
- Insistent client transfer — proceed AGAINST adviser recommendation. Possible but the adviser may decline to execute; you'd need to find another adviser or process it yourself (very rare).
If you proceed: mandatory 14-day cooling-off period. During this window, you can change your mind at no cost.
Stage 5 — Open the receiving SIPP and submit paperwork
You need a SIPP to receive the transferred funds. Major UK SIPP providers:
- Hargreaves Lansdown SIPP.
- AJ Bell SIPP.
- Interactive Investor SIPP.
- Vanguard SIPP.
- Specialist platforms (Curtis Banks, Hartley Pensions, Dentons) for property + non-standard assets.
Steps:
- Open the receiving SIPP. Identity verification, bank linking. Usually 5-10 working days.
- Sign the transfer authority form. Your adviser typically prepares this.
- Submit to current scheme administrator with CETV statement.
Stage 6 — Scheme transfers funds and confirms
The scheme administrator processes the transfer:
- Confirms the CETV is still valid (within 3 months of original calculation).
- If expired, recalculates CETV — possibly different now due to rate changes.
- Initiates payment to receiving SIPP.
- Confirms transfer complete in writing.
Timeline: 4-12 weeks typically. Faster for well-organised schemes; slower for underfunded or complex schemes.
You receive: the SIPP credited with the transferred amount; written confirmation from the original scheme that your DB rights have been extinguished.
What happens to your original pension rights
Once transferred, your DB pension rights are permanently extinguished. You no longer have any claim to the future DB payments. The transfer is irreversible.
Your SIPP now has the transferred amount + you bear full investment + longevity risk going forward.
Common process delays
- Scheme administration delays: understaffed or backlog. Persistent follow-up needed.
- Adviser cooling-off: some advisers add a 30-day "second look" period beyond the statutory 14-day cooling-off.
- CETV expiry: if the process takes >3 months from CETV calculation, the scheme may recalculate at the new rate.
- Receiving SIPP delays: identity verification, account setup, bank linking.
- Tax complications: Lifetime Allowance / LSDBA checks on very large transfers.
Costs to expect
| Cost | Typical range |
|---|---|
| CETV statement | £0 (statutory free once per year) |
| FCA-regulated transfer advice | £3,000 - £10,000 |
| Receiving SIPP setup | £0 - £400 |
| Annual SIPP fee (ongoing) | £100 - £400 |
| Transaction costs (initial investment) | £30 - £150 |
| One-off cost of transfer | £3,000 - £10,500 |
Sources and methodology
Regulatory process from Pension Schemes Act 2015 (Section 48), FCA COBS rules, and Pensions Regulator guidance. DB transfer decisions require FCA-regulated advice. This page is educational only. See the tax adviser editorial recommendation for tax-planning; for transfer advice itself, find an FCA-authorised Pension Transfer Specialist via the FCA Register.
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