What are the options on leaving?
You will remember from previous modules that the options available depend on the scheme rules and there are statutory requirements relating to Transfers.
DB schemes
Less than 3 months
Less than 24 months
More than 2 years and under age 55
More than 2 years and over age 55
DC schemes
Less than 30 days
More than 30 days and under age 55
More than 30 days and over age 55
Care is needed in this area!
Before we look at the different options there are a few things that need to be considered.
AVCs
They must not be forgotten! In a DC scheme these benefits may be held with different investment managers. They may provide DC benefits in a DB scheme and therefore, usually, will be treated differently e.g. transfer rights will be different and exercisable separately.
Transfer In
A member may have received a transfer in from another scheme, in which case there may be no entitlement to an SSRLS.
Opt out
This is where a member leaves the scheme but remains employed. They normally have the same options as any other member but scheme rules will need to be checked first.
Automatic Enrolment
The term "opt-out” means something different in the joining window of automatic enrolment schemes. Workers who have been automatically enrolled into their employer’s scheme may "opt out” within 30 days of having been enrolled. This is considered later in this module.
