I am leaving before I have built up two years’ qualifying service, what do I get?

Because you have not built up enough qualifying service in the scheme to qualify for a pension you get to choose from two options.

You can receive:

  • a refund of your contributions less deductions; or
  • a cash transfer sum to purchase benefits within another pension arrangement.

If you leave within one month of joining, or after one month but within three months and do not have any previous service, you cannot transfer your alpha pension into another arrangement but you will be entitled to a refund of your contributions which your employer will process through the normal payroll.

If you can transfer your pension into another arrangement you must apply within strict time limits; you will be advised of these when you get your transfer quote.

What is a refund of contributions?

This is a refund of the pension contributions that you have paid, less deductions for tax.

It is only the money that you have paid in that will be refunded, not any contributions paid by your employer.

What is a cash transfer sum?

This is the value of the notional pension benefits you have built up. You can choose to transfer it into another pension scheme. There is more information about transferring your pension in Section 04D - Transferring your pension out of alpha.

Can I have a preserved pension instead?

No, unless you have two years’ qualifying service (or have brought a transfer in from a personal pension) you are not entitled to a preserved pension in alpha.

I transferred in a pension from another pension scheme. Does this affect anything?

The transfer in will have bought you some additional alpha pension.

A transfer in from a personal pension allows your pension to be preserved even if you have less than two years’ service.

I was buying an EPA. Does this affect my refund or transfer?

Your refund will take into account the higher contributions you were paying. Your transfer will be worked out to reflect the value of the EPA portion of your pension.

I was buying added pension. Does this affect my refund or transfer?

Your refund will include your added pension contributions that you paid. Your transfer will include any added pension that you had bought.

When and how do I claim my refund?

Shortly after you leave you will get an estimate of your refund and cash transfer sum, and a form to return telling the Scheme Administrator (MyCSP) your preferred option.

If you choose a refund it will be paid into the bank account you have provided us with the details of.

When and how do I start the transfer process?

When you get the estimate of your refund and cash transfer sum, you can advise the Scheme Administrator of your preferred option and the details of where you want to transfer your benefits.

You must return the form within three months stating that you would like a transfer. You and the receiving scheme will need to complete the relevant discharge papers to enable the transfer to be paid.

Published:
14 December 2021
Last updated:
15 December 2021