Part 1: Public Service Pension Schemes Chapter 1: Schemes other than Judicial Schemes and Local Government Schemes Section 21: Transfers
This section provides that scheme regulations may make provisions about transfers in and out of the scheme. Where a member leaves a pension scheme they may be eligible to transfer their pension rights to another pension scheme. Where a member joins a public service pension scheme they may be able to transfer other pension rights into the scheme, including rights from another public service pension scheme. Section 21(1)(a) provides for scheme regulations to make provision about the transfer out of remediable service. This will allow schemes to reflect, when calculating the transfer value, that members with remediable service are able to choose whether to receive new scheme benefits or legacy scheme benefits when calculating the transfer value.
	Section 21(1)(b) to (1)(d) therefore provides for scheme regulations to make provision about transfers into the scheme in respect of rights in relation to remediable service in another public service pension scheme.
	Section 21(1)(e) allows schemes to make equivalent provision for other transfers into a Chapter 1 scheme made during the period between 1 April 2015 and 31 March 2022. In such cases, the transfer will not have included rights in relation to remediable service (i.e. to which the member had a choice of benefits), but this section will allow for scheme to provide rights, for example, in the legacy scheme rather than the new scheme where the transfer was originally received in the new scheme, or to vary the rights to reflect a member’s decision under section 6 or 10.
	Section 21(2) provides for scheme regulations to vary the benefits arising in a legacy scheme from a transfer under section 21(1)(b) to (e) where an election for new scheme benefits is made under section 6 or 10. Section 21(3) provides that the rights may be varied so that they are of equivalent value to rights that would have been secured under another Chapter 1 scheme.
	Section 21(4) envisages that scheme regulations may provide for any rights to benefits that would otherwise have been secured by the transfer in to be extinguished. Section 21(5) provides that where such provision is made, scheme regulations must provide for alternative benefits to be awarded in a Chapter 1 scheme. There are two permitted options: benefits of an actuarially equivalent value to the extinguished rights; or benefits that are the same as the benefits that would have arisen had the transfer in been made to that scheme.
	Public service pension schemes and some public body pension schemes participate in an arrangement known as the Public Sector Transfer Club (the Club). The Club is concerned with the portability of pension rights in the public sector and provides that a transfer between the participating schemes is carried out on the basis that the member will receive equivalent benefits in the receiving scheme (provided the transfer is made within specified time limits). Where a member transfers remediable service from a public service pension scheme into another public service pension scheme on the Club terms, the policy is that they will continue to receive a choice of whether to receive legacy scheme benefits or new scheme benefits in the receiving scheme. The scheme will therefore calculate two separate transfers: the rights arising from the transfer of rights relating to legacy scheme benefits in relation to remediable service from the exporting scheme and those relating to rights in relation to new scheme benefits in relation to remediable service. The member will then receive legacy scheme benefits or new scheme benefits in relation to the transfer in line with any election under section 6 or 10.