PSI13.2.1 - Withdrawal from Service: Refunds of Contributions General

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

[PN10.2 and 10.45]

On leaving a pension scheme a member may, in certain circumstances, be entitled to take a refund of his/her contributions to that scheme. Refunds of contributions are, nowadays, exceptional and since the full implementation from 6 April 1980 of the preservation requirements of the Social Security Act 1973 (see PSI13.1.1), we place no separate restrictions on them. Where, however, a member takes a refund of contributions made to a scheme, this disqualifies the member from taking any other benefit from that scheme in respect of the period for which the refunded contributions were paid apart from a GMP or benefits from Protected Rights as required by the contracting-out legislation (see however PN 7.12).

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