Leaving

If you leave the Scheme for any reason other than retirement or Ill Health, your benefits will depend on how long you have been in the Scheme.

If you have been a member for less than 30 days

If you have been a member for less than 30 days and have not transferred benefits into the Scheme from a personal or a stakeholder pension arrangement, or a previous employer’s scheme, you will receive a refund of your member contributions. This includes your contributions to the Pay Related Section plus the value of your Pension Account which has resulted from your own contributions, less tax at the appropriate rate.

If you have been a member for 30 days or more

If you have Pensionable Service in the Scheme of at least 30 days (and left on or after 1 October 2015), or have had a transfer in from a previous pension arrangement, your benefits will remain within the Scheme, and you will have what are known as deferred benefits.

At anytime before retirement, you may transfer the value of your benefits into a personal or stakeholder pension, or a new employer’s scheme, if that scheme is willing to accept it.

If the Trustee agrees (and with the consent of the Company, if you wish to draw your pension within five years of leaving service), you can draw your preserved pension anytime after you reach age 55, or at any age if due to Ill Health (as defined in the Scheme Rules).

Additional options if you joined before 1 October 2015

If your date of leaving is after 1 October 2015, and you have less than 2 years pensionable service (and have not transferred benefits into the Scheme from a previous provider), you can chose to have a refund of your contributions instead of deferred benefits. However, unlike deferred benefits, the refund does not include the value of any contributions paid by the Company.

If your date of leaving is before 1 October 2015 and you have less than 2 years pensionable service, you are not entitled to deferred benefits. By default you will receive a refund of your contributions, however, as long has you have completed at least 3 months pensionable service, you may choose to transfer the value of your benefits to an alternative arrangement, such as a new employer’s scheme or personal pension.  

© Clarks Pensions 2014