What notifications are made in respect of leavers?
When a member leaves a scheme the employer will inform the administrator usually either by providing a leaving service form or, notification could be through an electronic interface.
There will normally be a specific process in place and sometimes a member will call to ask about their options, having left the scheme but the administrator doesn’t know the person has left.
Benefits cannot be calculated until the leaving service notification has been received. Depending on the scheme size, leavers may be dealt with on a bulk basis each month so it may be a few weeks after a member has left before this notification is received. The member’s record will need updating with some information so that the benefits can be calculated.
DB schemes
Member contribution data is normally updated on an annual basis at each scheme renewal date. The leaving service notification will state the member contributions from the last renewal date to the date of leaving.
DC schemes
Member data is normally updated on a monthly basis as contributions need to be invested each month. The leaving service notification will state the final month’s contribution that the member paid.
