Quick answer: An occupational pension is one set up by an employer. Defined benefit occupational pensions over £30,000 legally require transfer advice from a Pension Transfer Specialist; defined contribution ones don't, but advice is recommended if there are guarantees, AVCs or matched contributions. Your employer cannot block a transfer once you're a deferred member.
DB vs DC occupational pensions
| DB occupational | DC occupational | |
|---|---|---|
| Examples | NHS, LGPS, Teachers, old final-salary | NEST, modern workplace pensions |
| Advice over £30k | Legally required | Recommended |
| Transfer value | CETV (actuarial) | Current pot value |
| Usually worth transferring? | No | Often yes (consolidation) |
What a specialist checks
- Scheme rules and what you'd lose
- Whether the CETV is fair (typically 20–30× the annual pension)
- Guaranteed Minimum Pension (GMP) on pre-1997 service
- Contracted-out service and reconciliation
- Protected pension age or protected tax-free cash
- Spouse and dependant death benefits
Common mistakes
- Transferring just to "have control" when you won't actively manage investments
- Misreading a gilt-yield-driven CETV that swings 30% year to year
- Ignoring the 50% spouse pension a DB scheme provides for life
- Rushing a transfer before GMP reconciliation completes
Read next: Defined benefit transfers and What is a CETV?
Frequently asked questions
An occupational pension is a pension scheme set up by an employer for its employees. It can be defined benefit (final salary / CARE) or defined contribution (workplace pension). Most UK workers have at least one occupational pension from a current or previous employer.
If it's a defined benefit occupational pension worth over £30,000, advice is legally required. For defined contribution occupational pensions, advice isn't required but is recommended — especially if the scheme has valuable features like AVCs, GARs, or matched contributions.
Almost always 100% of your accrued benefits. There's no statutory limit. Some schemes allow partial transfers (e.g. LGPS, certain corporate schemes), but most require all-or-nothing.
No. Once you're a deferred member (no longer accruing benefits), the employer cannot block the transfer. They can request additional information, but the transfer is your statutory right under the Pension Schemes Act 1993.
Most occupational pension transfers go through general Pension Transfer Specialists. For complex schemes (final salary, hybrid, MPS, contracted-out) you want an adviser with specific experience of that scheme type — ask their case-history breakdown.