LEAVING THE SCHEME

LEAVING NILGOSC

The following options apply if you leave the Scheme:-

Preserved Benefits

You are entitled to preserved (or ‘deferred’) benefits, calculated as per normal retirement benefits, provided that you have at least three months membership and you have not reached state retirement age at time of leaving the Scheme.

Preserved benefits are payable at age 65 or, if earlier, at the date between age 60 and 65 when the 85 Year Rule* would have been met had you remained in the Scheme. You can apply from age 60 for benefits to be paid on a reduced basis before the payable date.

Preserved benefits may be brought into payment early on the grounds of permanent ill health or, in exceptional circumstances, on compassionate grounds if you are aged 50 or over.

A death grant, spouse’s or civil partner’s and children’s pensions, if applicable, are payable in the event of death before benefits are due.

* The rule means that if your age at retirement and your total membership counted in whole years, when added together equal at least 85, there is no reduction. The 85 year rule is being phased out from 1^st April 2008 and will not apply to any members who join the Scheme after 30^th September 2006. For members who joined before 1^st October 2006, if you were born before 1^st April 1956 and will pass the 85 year rule test before 1^st April 2016, and you retire by then, you are protected from the change. If you continue working beyond 1^st April 2016, any benefits accrued after that date will be subject to reduction if taken before age 65. However, if you can satisfy the 85 year rule before 1^st April 2020, a smaller reduction will apply to benefits which you accrue up to 31^st March 2008. Benefits accrued up to 31^st March 2008 are protected for members who join the Scheme before 1^st October 2006 and who could meet the 85 year rule test at some time in the future, but were born on or after 1^st April 1956.

Refund of Contributions

A refund is payable if you leave the Scheme with less than three months membership and have not transferred in membership unless:-

§ You re-enter this scheme; or

§ Your date of leaving falls in the same income tax year in which you attain state retirement age. In this case you will be entitled to a pension and lump sum on attaining state pension age regardless of the length of your membership; or

§ You transferred in benefits from a personal pension arrangement.

Transfer to another pension arrangement

As an alternative to a refund of contributions or preserved benefits, you may be able to transfer the value of your accrued benefits to another pension arrangement.