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Codes of practice

Code of practice 04
Early leavers

Flowchart 2 Early leaver - the process

This chart shows the process involved when a member leaves pensionable service early with less than two years' pensionable service and no vested rights to a benefit under the scheme, but satisfies the three months condition (see Flowchart 1).

Note: If the scheme is contracted out of the State Second Pension and the trustees wish to pay a contributions equivalent premium, (see paragraph 2 of the code) the overall time taken to do this will need to be less than six months to allow for such a payment.

Flowchart 2 early leaver - the process

Reasonable period (1) The Regulator expects that this would usually be within a period of three months from the date of the member leaving pensionable service.
Reasonable period (2)

The Regulator expects that this would usually be a period of at least three months from the date that member is notified of their rights.

Reasonable period (3) The Regulator expects that this would usually be within a period of three months from the date of the member's notification or deemed notification (regulation 5 of the Occupational Pension Schemes (Winding up etc) Regulations 2005/706) to the trustees.
Reasonable period (4) The Regulator expects that this would usually be a period of one month from the reply date or the end of any further period of time notified to the member by the trustees.
Reply date Is the last day of the reasonable period (2).

Related documents
Early leavers (PDF)