4.1.55 Where someone left with enhanced benefits:

  • on early retirement under compensation terms;
  • on ill-health terms; or
  • with reserved rights under compulsory early severance; they may have had their period of pensionable service enhanced.

On re-employment, you need to ensure they are prevented from paying pension contributions to build up any further pension until the period of enhancement (the “quarantine period”) has expired, although the member can opt to pay ‘extra’ contributions to purchase added pension and/or contribute to the Additional Voluntary Contributions Scheme (AVCS).

You must tell any rejoiner in this position when their quarantine period will expire in their letter of appointment. The tool will tell you the correct letter text to use. You must ask the Scheme Administrator for the quarantine period end date. You must also tell your payroll the quarantine period end date, so that they know when to start deducting employee contributions and paying the full ASLC.

4.1.56 You will be responsible for paying a mini-ASLC of 0.5% of the rejoiner’s pensionable earnings during the quarantine period to cover them for death in service.

4.1.57 Where a rejoiner decides to join partnership, they can make contributions (through payroll) to their account from their start date. You only pay a mini-ASLC of 0.5% during the enhancement (“quarantine”) period.

Published:
23 December 2021
Last updated:
23 December 2021