PSI13.2.3 - Withdrawal from Service: Refunds of Contributions - Contributions for Widow(er)s' Benefits

(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)

Some schemes (mainly in the Public Sector) require compulsory contributions for widow(er)s' benefits to be paid by the members regardless of their marital status. These may be refunded if the member is single, a widow(er) or a divorcee when he/she leaves service or retires. Additional voluntary contributions by a married person to provide a widow(er)'s pension may also be refunded if he/she is no longer married when he/she leaves service or retires. (The scheme rules may of course restrict or prohibit a refund of contributions made during marriage). This is permissible even where the member is given pension benefits for himself/herself. But if the member was not married when the additional voluntary contributions were paid, he/she may not subsequently receive a refund. The contributions can however be used to augment his or her benefits within approvable limits.

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