How to combine your defined benefit pensions

If you have multiple defined benefit pension schemes, you could consider combining them. Here’s what you need to know about consolidation, including how to check if you’d lose any benefits by transferring.

What’s in this guide

Step 1: Check the type of pensions you want to combine
Step 2: Check if your pension schemes allow transfers
Step 3: Ask your pension schemes for transfer quotes
Step 4: Check what the new pension scheme will offer you
Step 5: Check if you’ll lose any existing benefits by transferring
Step 6: Confirm you want to transfer your defined benefit pension

Step 1: Check the type of pensions you want to combine

You can use our tool to find out your pension types or ask your pension providers.

This guide explains how to transfer a defined benefit pension into another defined benefit scheme.

For other types of transfer, see our guides about:

defined benefit to defined contribution transfers

defined contribution pension transfers and consolidation

If you’ve lost track of a pension, find step-by-step help in our guide How to find old or lost pensions.

What are the different types of pension?

There are two main types of pension scheme:

defined contribution - the amount you’ll get depends on how much is paid in and how well your invested money performs
defined benefit (often called final salary or career average schemes) – you’ll get a guaranteed amount based on your salary and how long you worked for your employer.

Most recent pension schemes are defined contribution unless you work for the public sector, like the NHS or Armed Forces.

Step 2: Check if your pension schemes allow transfers

Many defined benefit schemes allow transfers, but not all do – ask your providers for their rules.

For example, you often cannot transfer out:

within a year of your normal retirement date

after your pension has started paying out

if you have an ‘unfunded’ public sector scheme, like the NHS or Teachers’ Pension Schemes.

Some schemes might also only accept transfers in during the first year of you joining.

If transfers are allowed, it’s a good idea to find out what information you’ll need to transfer away.

If you’re considering combining two public sector schemes, check if the Public Sector Transfer ClubOpens in a new window will do the transfer for you automatically. This includes schemes from the Armed Forces, Civil Service, local government, NHS and education.

Step 3: Ask your pension schemes for transfer quotes

For each pension you’re considering moving, ask the provider for a cash equivalent transfer value (CETV). This is how much the new scheme would receive.

A CETV is usually valid for three months and your provider has up to three months to send it to you. You might have to pay for a CETV if you request more than one in a 12-month period.

Step 4: Check what the new pension scheme will offer you

You can give your CETV to the potential new scheme and ask them to explain the pension benefits this would buy you.

Make sure to check how your transferred pension would be linked to your salary. For example, you could get:

a service credit based on your current salary

extra years of service based on salary you’ll earn until you retire.

If the new scheme calculates your benefits based on your future salary, you might benefit if your salary is likely to increase over time. But if you’re planning on reducing your hours so your salary goes down, you might be better off leaving your pension where it is.

Step 5: Check if you’ll lose any existing benefits by transferring

Always compare all the benefits offered by your existing scheme to the new scheme.

If the new scheme does not offer one or more of the features you already have, you’ll lose them by moving your pension.

Features and benefits to compare include:

the rate a tax-free lump sum would be calculated at, and whether or not it will reduce your guaranteed pension income

death benefits – how much will be paid to your dependents when you die

the age you can claim your pension, called the normal retirement age – this might let you access your pension earlier than other schemes

annual pension increases – how much each scheme will increase your pension by.

You can ask your current provider to explain their features and benefits if you’re not sure.

Step 6: Confirm you want to transfer your defined benefit pension

If you’re happy to transfer your pension, the next step is to action the move.

To combine public sector schemes, you can usually use the Public Sector Transfer ClubOpens in a new window
For other transfers, ask your existing and new schemes what you need to do.

If your CETV is over three months old, you’ll need to request a new one. The two schemes will then:

arrange to transfer the money across

confirm when the transfer is complete

send you updated benefit statements.

A transfer often takes between two and six weeks, but your provider has up to six months to action your request.

If your pension provider is slow to act, you can complain. For step-by-step help, see our guide How to complain about delays to your pension. 

Do not transfer your pension if you feel pressured or unsure

Do not transfer your money to a new pension provider or invest any money because of a cold call, visit, email or text – it’s likely a scam. You could lose your money and face a large tax bill. 

For more information, see our guide How to spot a pension scam. 

Your transfer might be stopped if your provider thinks it’s a scam

When you ask to transfer your pension, your current provider must make several checks to see if there’s a risk of you being scammed.

This includes checking the type of scheme you’re transferring to, how it’s regulated, its fees and how your money would be invested.

If your provider is worried the new scheme might be a scam, they can decide to:

stop your transfer if they have serious concerns

delay your transfer until you’ve booked a free Pension Safeguarding Guidance appointment.

For more information, see our guide What to do if your pension transfer is stopped or delayed.