My pension if I leave
If you leave you can keep your pension with us, or transfer it to another pension provider.
Leaving after 3 months' service
If you leave after completing 3 months’ pensionable service, we will automatically keep your pension here with us. Your pensionable service is usually the same as your stipendiary service.
While your pension is with us, we will increase it until you retire, die, or transfer it to another pension provider.
How does my pension increase?
Your pension is based on the previous years' National Minimum stipend (NMS). If this increases, your pension increases at the same rate. The NMS has a long-term target of increasing in line with the Consumer Prices Index (CPI).
If the NMS does not keep up with CPI, we will increase your pension in line with CPI, up to a cap:
Pension earned before 6 April 2009
This part of your pension increases in line with CPI up to 5% a year.
Pension earned after 6 April 2009
This part of your pension increases in line with CPI up to 2.5% a year.
Your pension will increase differently when you retire.
Leaving with less than 3 months’ service
If you complete less than 3 months’ pensionable service, you usually have two choices.
1. Transfer your pension to another provider.
2. Choose a refund of any contributions you have paid.
Transferring your pension is usually the best option, as your money stays in a pension. You also get to keep the contributions your employer paid in.
If you choose a refund, we will deduct tax. We will also refund any contributions your employer paid back to them.
Can I carry on paying into my pension?
No. You can only earn pension while you are an active member. Once you leave, contributions stop and you stop earning pension.
Re-joining after leaving
If you re-join, we will re-activate your pension and you will earn extra pension from the date you re-join.
If you re-join within 3 months of leaving, we will treat your service as continuous.
If your new role is outside the usual Diocesan structure, it can be possible for you to stay in CEFPS. Your new employer or organisation will need to agree to become a Responsible Body.
Transferring my pension - what to know
You can transfer your pension to another pension provider at any point before you access your pension. This could be a new employer's pension scheme, or you might want to consolidate your pensions.
There is no time limit to transfer - you can transfer at any time before you retire.
You don't need financial advice to transfer your pension out, but if you are ever unsure, it is good to speak to an adviser.
If you move overseas, you might want to move your pension with you. You can do this by following the usual transfer procedure, but we need to do a few more checks than usual.
We also need to check you're moving your pension to a pension scheme on the Government's recognised pension scheme list. You can check the list here.
How does a transfer work?
A pension transfer means giving up your pension in return for a sum of money, which is called a ‘transfer value’. Your transfer value could be a large amount of money which you could transfer to another registered pension scheme to then take as cash or invest.
While it is invested it could go up in value, but there is a risk it could go down in value too. Once you transfer your pension, there are lots of different ways you can use your money, and even leave it to loved ones.
Is transferring a good idea?
Transferring can be worth exploring, depending on your circumstances. Having more flexible ways to access your money can really help if you are in poor health and your life expectancy is limited, or you are single or have no dependents.
You might want to get your hands on more money up front and even leave money to your loved ones. But, there are risks to doing this. Transferring means, you will give up your pension and the guarantees and security that go with it, such as:
- a guaranteed pension that lasts as long as you live
- yearly increases in line with inflation, up to a cap
- a tax-free lump sum when you retire and a pension for your spouse or civil partner after you die
Because of these guarantees, if your transfer value is more than £30,000 you must take professional financial advice first. To make it easy for you to get advice, we have partnered with Ecclesiastical Financial Advisory Services (EFAS).
If you transfer your pension, you cannot transfer it back to us.
Should I transfer?
Think carefully before you transfer.
Other pension schemes may provide a different type of benefit, so it can be difficult to make a comparison. If you are in doubt whether a transfer is in your best interests, we strongly recommend that you take independent financial advice.
Here are a few things you should consider:
- Before you transfer, check your new pension provider’s Annual Management Charge. Higher fees mean more of your money is taken as charges.
- Will consolidating your pensions make it easier for you to keep track of where your pensions are, and how they are performing?
- If you want to move your money out of your new pension scheme, can you easily do this?
- What are your new investment choices, and if you would like to invest ethically, do they have an ethical option?
- Check what will happen to your pension if you die.
If you would like to transfer, head to PensionsOnline (just go to the link below to log in) and you can run your transfer value and download the forms you need to transfer.
Transfer restrictions
If you have pensionable service before 1998 you will have benefits in the Church of England Pension Measures (CEPM). Anything after this is provided under the Church of England Funded Pension Scheme (CEFPS).
There are some restrictions on whether you can transfer your CEPM benefits. The CEPM rules stop you transferring once you are within one year of your ‘Normal Pension Age’ which is usually age 65.
You need to apply to transfer your CEPM benefits before you reach age 64. We can complete your transfer after you turn 64. There is no age restriction on CEFPS.
There is also less flexibility on your CEPM benefits. You must transfer all your CEPM benefits if you decide this is best for you.
You cannot take part of your CEPM benefits as a pension and transfer the balance to a defined contribution provider. You can transfer part or all your CEFPS benefits and leave the rest with us.
Partial transfers
You can transfer part of your Clergy pension and keep the rest with us. This is called a ‘partial transfer’. A partial transfer could give you the security of a guaranteed pension with us, plus the freedom and flexibility to take money in other ways. Here is an example if you transferred half your Clergy pension and keep the rest with us.