What happens if I leave the Scheme?
Leaving the Scheme before retirement
If you leave employment or stop contributing to the Scheme before retirement, the options available to you will depend on how long you have been a member.
In many cases, the benefits you have already built up can continue to provide value for your future, even after you leave the Scheme.
If you have less than three months service at the point of leaving the Scheme, you automatically receive a refund of your contributions.
Length of service
If you have less than two years' membership Show
If you have been a member of the Scheme for less than two years, you will normally have two options:
- receive a refund of your own contributions, less any tax due
- transfer the value of your pension to another pension arrangement
Please note, if you have transferred a pension into the Scheme, you are automatically considered to have more than two years membership.
If you have less than two years’ service and leave the Scheme, your pension benefits must be claimed within six years or they are forfeited.
If you are considering transferring your pension benefits, you may wish to take independent financial advice before deciding.
If you have more than two years' membership Show
If you have been a member of the Scheme for more than two years, you will usually have the following options:
1. Leave your in the Scheme
You can leave the benefits you have built up in the Scheme until you are ready to take them.
Your pension is not frozen. While it remains in the Scheme, it to increase each year in line with inflation, subject to Scheme rules.
It’s important to keep your details up to date with the Scheme Administrator, including any changes to:
- your address
- marital status
- contact details
- beneficiary details
You can update your information through your online portal, OneView.
2. Take your pension early
Some members in the Scheme hold a Protected Pension Age. This means you may be able to take your pension before the Normal Pension Age (NPA). Protected Pension Age for some members is age 50 or 55.
To learn more about NPA, visit MoneyHelper’s dedicated web page.
Because your pension would be paid for longer, it will be reduced if taken before your Normal Pension Age. Reduction factors are reviewed periodically by the Trustee.
3. You also have the option to transfer your benefits to a new pension arrangement.
Transferring your benefits
You may be able to transfer the value of your pension to another pension arrangement. Transfers are not permitted under the Scheme rules for members within a year of their Normal Pension Age.
The amount available is known as your transfer value, which represents the current value of the benefits you have built up in the Scheme.
Transferring your pension is an important decision and will not be suitable for everyone. If you transfer, you will be giving up the benefits provided by the Scheme, including a guaranteed income for life.
If you transfer to a public sector employer you may be able to transfer out under the Public Sector Transfer Club.
Before making any decisions, we strongly recommend speaking to a regulated financial adviser. If your transfer value is greater than £30,000 you must, by law, take advice from a regulated adviser.
It may be possible to transfer the benefits you have built up to an overseas pension arrangement providing it is a Qualifying Recognised Overseas Pension Scheme (QROPS). You can check if the scheme you want to transfer to qualifies on the Gov.UK QROPS list.
Request a transfer value
If you’re considering transferring out, you can request a transfer value by contacting the administrator or on your OneView account.
Opting out of the Scheme during employment
Although employers are required to provide workplace pension arrangements, membership of the Scheme is not compulsory.
You can choose to opt out of the Scheme at any time by giving your employer at least 28 days’ written notice.
If you choose to opt out of the Scheme, you’ll stop making pension contributions. This means you will no longer receive tax relief on those contributions, so your take-home pay may not increase by the full amount of contributions that would otherwise have been deducted from your salary.
Before deciding to opt out, it’s important to consider the impact this could have on your future pension benefits and any dependant benefits provided by the Scheme. You may also wish to take independent financial advice.
Can I rejoin the Scheme if I have opted out previously?
If you previously opted out of the Scheme (unless this was to start taking your pension while still working), you can ask to rejoin by making a written request to your employer.
If you remain opted out, you will normally be automatically re-enrolled into a workplace pension arrangement every three years, in line with automatic enrolment legislation. If you opted out in order to start taking your pension while still working, under the Scheme rules you cannot be re-enrolled into the Scheme.
Please note that rejoining the MRC Pension Scheme cannot be guaranteed as this would depend on the eligibility criteria at the time of the request.
