Early leavers: DWP consults

Under the Pensions Act 2004, early leavers with only short service will have new rights to claim a "cash transfer sum" of their pension entitlement. Consequently, the Department for Work and Pensions (DWP) is now consulting on Regulations*, prescribing the detailed requirements to implement the necessary changes, which are to come into effect on 6 April 2006.

Currently, members with less than two years' pensionable service are only entitled to a refund of their own contributions on leaving a pension scheme, unless scheme rules provide otherwise.