Why might a member leave an occupational pension scheme?
There are various reasons why a member may leave a pension scheme, sometimes they have no choice.
By Choice
- New Job- the most obvious reason, the member has a new job with a different employer. The member must leave the current employer’s pension scheme.
- opt out - this is where a member decides they no longer want to be a member of the scheme but they remain employed with the company.
No choice
- Redundant- if a member is made redundant they are leaving their employer and therefore must leave the pension scheme.
- Wind up – if the employer is in financial difficulties the scheme may cease and all members have to leave.
- Scheme Closure- if the employer closes the scheme to future accrual, all members become deferred.
