I'm quitting my job and I would like to know what happens to contributions for pension. I made contributions to a pension scheme for 5 years. My new employer is offering a company scheme which I find very convenient. I would like to take that money and transfer to another pension scheme. Can I reclaim pension contributions when leaving work?
Your previous pension scheme includes a procedure to determine it's value. You should inform your pension provider about changing a job so your pension fund is correctly calculated. You can transfer to another scheme or you can just start a new one with your new company. Transferring would cost you additional fee but company pension schemes are often the best choice. You would get some benefits like bad health and disability benefits. Ask you new employer about details of their company pension scheme. In the second case your funds would remain in the previous scheme and you would have a status of deferred member if you continue with contributions. Since you want to reclaim contributions you are able to do so but not as a lump sum, but only as a transfer. I recommend an alternative plan called free-standing additional voluntary contribution to give you more benefits. Making a pension choice depends on personal issues and how long you are working, so consult with a pension adviser about the matter.
