Abolition of 'short service refunds'
23 October 2014
The Department for Work and Pensions (DWP) has announced that a member of an occupational pension scheme who leaves having completed more than 3 months but less than 2 years’ qualifying service will no longer be entitled to receive a short service refund.
The DWP announcement confirms that these refunds will no longer be permitted from October 2015. After that, schemes will only be able to make refunds within the first 30 days of membership. Defined benefit occupational pension schemes and personal pension schemes are not affected.