Refund of contributions

If you leave with less than three months’ pensionable service:

We will automatically refund the contributions you paid to the scheme, less deductions (see note below).

If you leave with more than three months but less than two years’ pensionable service:

You will be able to choose from one of the following options:

• A refund of the contributions you paid to the scheme, or

• A transfer of the cash value of your pension benefits to another pension arrangement

If you do not complete the transfer within three months, we will automatically refund the contributions you paid to the scheme, less deductions (see note below).

Note: We will deduct the cost of reinstating your benefits in the State Second Pension from your refund.  This is because you made a saving from paying lower National Insurance contributions when you were a member of the scheme. Once we have made this deduction, the remainder is taxed at 20% and the balance is returned to you.