What options may be available from a pension scheme?

What options may be available from a pension scheme?

On joining  

  • Pay Additional Voluntary Contributions (AVCs)
  • Salary sacrifice
  • Transfer In

On leaving 

  • Short Service Refund Lump Sum (SSRLS)
  • Preserved/deferred pension
  • Transfer out

Prior to April 2015, options available to members on leaving were broadly similar. However, new DC flexibilities have introduced some key differences which will be explored later in this module.

On death  

  • Lump sum death benefit
  • Spouse/civil partner/dependant’s pension
  • Contribution refund

On retirement  

  • Pension
  • Pension Commencement Lump Sum (PCLS)
  • Uncrystallised Funds Pension Lump Sum (UFPLS)
  • Trivial commutation (DB only)
  • Small lump sums

The member should be aware that, aside from legislation, many of the options available in an occupational pension scheme are governed by the Trust Deed and Rules.

These define:  

  • Who is eligible to join
  • Normal Retirement Age
  • Salary to be applied
  • Contributions payable
  • Benefits payable  

and where applicable:

  • Investment choices