Notification of right to cash transfer sum or contribution refund

General code in force: 28 March 2024

The scheme rules and legislation will determine how and if a cash transfer sum or contribution refund is payable to a member who has left active service.
Where a member has a right to a cash transfer sum or a contribution refund in accordance with section 101AB of The Pension Schemes Act 1993¹, the governing body must provide them with a written notice under 101AC of that Act².
The governing body should provide this information within three months of the date the member left service. Governing bodies should advise members where it is likely to take more than three months to provide the information.
The governing body should give members three months to reply and can extend this deadline at their discretion or if a member asks. If the member does not respond, the governing body may arrange to pay a contribution refund after a further month.
A member must inform the governing body of their choice in writing³.
The governing body should carry out the member’s wishes within three months of receiving them4. The governing body can extend this period in exceptional circumstances.
The governing body must pay any refund requested at the direction of the member.

Leaving schemes that are being wound up

Where a member is deemed to have requested a contribution refund following the commencement of wind-up under regulation 5 of the Occupational Pension Schemes (Winding up, etc.) Regulations 2005⁵, the governing body should take steps to pay the refund within one month.

¹ Section 97AB Pensions Schemes (Northern Ireland) Act 1993

² [Section 97AC Pensions Schemes (Northern Ireland) Act 1993]

³ Section 101AD(2) Pension Schemes Act 1993 [Section 97AD(2) Pensions Schemes (Northern Ireland) Act 1993]

⁴ Section 101AG Pension Schemes Act 1993 [Section 97AG Pensions Schemes (Northern Ireland) Act 1993]

⁵ Regulation 5 Occupational Pensions Schemes (Winding up, etc.) Regulations (Northern Ireland) 2005