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Early leaver - new rights – Transcript

Flowchart 1: Early leaver – new rights

This is a transcript of the flowchart intended as supporting material for Code 04: Early leavers.

1. Does the member have less than two years’ qualifying service, including service related to transfers in (if any)?

No – Member has the right to a preserved benefit or cash equivalent transfer value under existing regulations.

Yes – go to 2

2. Does the member satisfy the three months condition (see below)?

No – Member does not have the right to a cash transfer sum under section 101AB or Pension Schemes Act 1993. Any rights (to retained benefits or refunds of contributions) are those given by the scheme rules. 

Yes – go to 3

Three months condition

On the date on which pensionable service terminates, the period of the member's pensionable service under the scheme, taken together with:

  • any previous period of their pensionable service under the scheme; and
  • any period throughout which they were employed in* linked qualifying service under another scheme, amounts to at least three months.

* 'Linked qualifying service' means actual service in a previous scheme which gives rise to a transfer credit, which ranks as qualifying service (s179 PSA 93). Only service which has been transferred in to another scheme, and which gives rise to benefits under that scheme, can be linked qualifying service.

3. Does the member have any relevant accrued rights to benefits under the scheme rules including rights to transferred-in benefits?

Yes – Member does not have the right to a cash transfer sum under section 101AB of Pension Schemes Act 1993. Any rights (to retained benefits or refunds of contributions) are those given by the scheme rules. 

No – go to 4

4. Has pensionable service ended because the scheme has begun wind-up?

No – Member has the right under section 101AB of Pension Schemes Act 1993 to a cash transfer sum or contribution refund.

Yes – go to 5

5. Member has the right under section 101AB of Pension Schemes Act 1993 and the Winding up regulations – statutory instrument 2005 / 706 to a contribution refund