DB Leaver Options

Question 1

What options are there for DB leavers?

Answer 1

Preserved Pension

• must be offered if member has 2 yrs membership

CETV

• as above but 3 months

Early Retirement

• if minimum pension age reached

or

• satisfies ill health rules

Short Service Refund (of Ee contributions)

• less than 2 yrs qualifying service

and

• scheme rules offer this

Question 2

Short Service Refund Taxation?

Answer 2

1st 20k @ 20% Income tax

Remainder @ 50% income Tax