Leaving
the Scheme before benefits are payable
Can I opt out of the Scheme and re-join
the Scheme at a later date?
Can I have a refund of contributions?
When are deferred benefits payable?
Can I transfer my deferred benefits?
Can I have a refund of contributions?
If you leave with less than three months’ total membership you may take a refund of your contributions, less
any deductions for tax and the cost of buying you back into the State Second
Pension Scheme (S2P).
When are deferred benefits payable?
Deferred benefits are pension benefits which are calculated at the date of
leaving but are not payable until a later date.
If you leave before age 65 and your total membership is three months or more, you will be entitled
to deferred benefits within the Scheme. Your deferred benefits will be
calculated using the length of your membership up to the date that you left the Scheme.
Unless you decide to transfer your deferred benefits to another pension scheme,
they will normally be paid at age 65 (unless you elect to defer drawing them
until later). However they may be brought into payment earlier, and in full, in
the event of permanent ill-health.
You can, if you wish, elect to receive your deferred benefits early from age 60
onwards. You may be able to elect to receive your deferred benefits from age
55, but only if your former Council agrees. You must have your
former Council’s consent to draw your benefits before age 60. Benefits paid
early, other than on the grounds of permanent ill-health, will be reduced to
take account of their early payment and the fact that your pension will be paid
for longer.
If you die before your deferred benefits come into payment, a lump
sum death grant equal to 5 years’ pension will be paid.
Can I transfer my deferred benefits?
If you leave the Scheme at least one year before age 65 and you are entitled to
deferred benefits you may transfer the cash equivalent of your pension benefits
into a new scheme (if they are willing and able to accept it), a
personal or stakeholder pension scheme, or a ‘buy-out’ insurance policy. The
method of valuing the cash equivalent of your pension rights complies with the
requirements of the Pension Schemes Act 1993 and any value quoted is guaranteed
for three months.
Alternatively, if you are re-elected as a Councillor, you may elect for the pension rights that you have built up to
be added to your new period of membership in the Scheme. Such an election must
be made within twelve months of re-joining the Scheme.