Leaving - defined benefit
What happens if I leave the Scheme?
If you leave the Scheme, this will normally be because you change jobs. You may also leave the Scheme and continue to work for your employer. If you choose this option, you must give your employer one month’s written notice. In this case you can only rejoin the Scheme if your employer and the Committee agree to you doing so. In both cases you can choose to:
If you leave the Scheme you will no longer be covered for any death benefits.
Deferred pension
Final salary benefit structures
Your deferred pension is calculated using the pensionable service you have completed to the date you leave the Scheme (including any service transferred in from previous pension schemes) and your earnings.
For pensionable service before 1 April 2007 the earnings used in the calculation will be the better of
■ your final pensionable earnings; and
■ your actual pensionable earnings during the 12 months before you leave.
For pensionable service from 1 April 2007 the earnings used will be your final pensionable earnings.
CARE benefit structures
Your deferred pension is calculated using your total revalued career earnings, plus any benefits secured by transfer payments from previous pension schemes.
All defined benefit structures (final salary and CARE)
If you have changed benefit structures throughout your membership, the deferred pension built up for each period will be based on the benefit structure for that period.
Your deferred pension in respect of pensionable service before April 2002 in the Scheme is payable from age 60 without reduction for early payment.
Your deferred payment will continue to increase in value until it is paid to you. You may apply for early payment of your pension when you are eligible but this will be reduced to reflect the longer payment period unless your early retirement is due to ill-health and you qualify for an ill-health early retirement.
Transfer of your benefits
You may transfer your benefits to another pension arrangement (such as your new employer’s pension scheme or to a personal pension or Stakeholder plan) at any time after you leave the Scheme, but before you start your pension. The amount transferred will be the cash value of your deferred benefits.
A transfer value can be paid to another scheme or pension contract at your request. The transfer value represents the cost to the Scheme of securing your pension entitlement, using rates provided by our Actuary at the date of calculation. A Statement of Entitlement to a guaranteed cash equivalent transfer value of your benefits will be provided on request at any time. Transfer payments take into account the value of any discretionary benefit awarded by established custom.
Refund of your contributions
You may take a refund of your own contributions to the Scheme (with interest) only if you have completed less than two years’ qualifying service. Qualifying service includes your period of membership of this Scheme or other schemes of The Pensions Trust plus actual pensionable service in any previous scheme which you have transferred into this Scheme. If you have transferred benefits from a personal pension plan to the Scheme you cannot take a refund of your contributions.
There are two deductions from the refund: tax, currently at 20% (though if the refund is over £20,000, tax at 50% will be deducted on the excess over £20,000); and an amount which will buy you back into the additional State Pension.