What happens if I leave before I take my pension?
If you leave PACE, either because you no longer work for an Employer or because you choose to ‘opt out’, you will stop building up benefits.
If your Qualifying Service is less than 3 months, you will receive a refund of your contributions with interest, less tax and your share of the cost of putting you back into the State Second Pension (S2P) (equal to the National Insurance saving you received whilst you were a Member). This will be paid through payroll for salary sacrifice Members.
If your Qualifying Service is at least 3 months but less than 2 years, you will be given the option to transfer your benefits to another registered pension scheme or to take a refund of your contributions less the deductions described above. If you do not choose to transfer within three months of your options being sent to you, a refund less deductions will be paid to you.
If your Qualifying Service is 2 years or more, you will be provided with a deferred pension of the amount you have built up to the date of leaving. You will also have the option to transfer your deferred pension to another registered pension scheme.
If you leave your deferred pension in PACE, please refer to the 'What do I get when I retire?' section for information on how and when your pension can be paid and any options you may have at retirement.
