Leaving the Scheme before benefits are payable

Can I have a refund of contributions?

 
If you leave with less than three months’ total membership and have not brought a transfer into the Scheme 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 or you have transferred other pension rights into the Scheme, you will be entitled to deferred benefits within the Scheme. Your deferred benefits will be calculated as described in How Scheme benefits are 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 employer agrees. However, if you were paying into the Scheme on 31 March 2009 the earliest age you may be able to elect to receive your deferred benefits with your former employer’s consent is 50, rather than 55, provided you do so before 1 April 2010. You must have your former employer’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.

A widow’s, widower’s, civil partner’s or, subject to the certain qualifying conditions, a nominated co-habiting partner’s pension and pensions for eligible children will also be payable. A widow’s or widower’s pension is equal to 1/160th of your final pay times the total membership your deferred pension is based on unless you marry after leaving the scheme in which case it could be less. A civil partner’s and nominated partner’s pension is equal to 1/160th of your final pay times your membership in the Scheme after 5 April 1988.

 
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 employer’s 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 return to employment with an employer participating in the Scheme, then 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.