New rights for early leavers

At present, where members of an occupational pension scheme leave a scheme with less than two years' service, they are not usually able to retain benefits (other than protected rights) in the scheme, but are paid a refund of contributions (if the scheme is contributory).

The Department for Work and Pensions (DWP) has now made Regulations¹, which will be effective from 6 April 2006, fleshing out the details of new rights given to leavers with only short periods of service under the Pensions Act 2004.