PSI13.2.5 - Withdrawal from Service: Refunds of Contributions - Leaving Scheme without Leaving Employment

(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)

From 6 April 1988 a member has the right to leave his or her employer's scheme while remaining in service, a situation often referred to as 'opting out'. We do not object to a refund of contributions in these circumstances whatever the reason for leaving (which may include winding-up of the scheme), the ability to take such a refund is governed solely by Social Security legislation (see Section 1 of this Part). You should note that continuing non-contributory membership of the scheme for death in service benefits only does not preclude eligibility for a refund.

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