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Pensions and retirement planning
Change of circumstances and your company pension
If there is a change in your circumstances this might affect your company pension. Should you leave your company you need to know what your company pension options are. If you have concerns about the future of your company pension then find where to get advice.
Leaving your company
Deferred membership
Once you have left your company you will be a deferred member of the company pension scheme. The money that has been paid into your pension remains but you cannot usually continue to pay into the scheme.
As a deferred member, you might not be entitled to some scheme benefits. For example, 'death in service' benefits may only apply to members who are still employed by the company.
Different types of company pension schemes
If your company pension is a salary-related scheme, your benefits will be revalued on a regular basis to ensure they keep pace with inflation.
If your company pension is a money purchase scheme your fund will continue to be invested. You will continue to receive yearly statements and forecasts on how it is performing.
If you move address
It is important that you tell your pension scheme administrator if you change address.
Transferring your company pension fund
It is possible to transfer your fund out of a company scheme and into a personal pension or a different company scheme (if you have changed employers). There may be an administration cost to pay. It is not always in your best interests to transfer your company pension - there may be advantages to becoming a deferred member instead.
Do not forget, if you decide to keep your benefits in your previous employer’s company pension scheme, you can still join another company pension scheme. If you’re not sure if you should transfer your fund out of a company scheme, it may be worthwhile taking independent advice before you make a decision. You can also contact The Pensions Advisory Service which offers free pensions advice.
Worried about your company pension
No financial products, including pensions, are entirely risk-free. For example, your employer may go out of business, or decide to change, or close their company pension scheme for another reason. This could mean you get less than you were expecting. Also, the amount of pension you get may depend on how well the scheme’s investments have performed by the time you retire.
If you are worried about the future of your company pension, talk to your pension scheme administrator about your options. You can also get free advice from The Pensions Advisory Service.
If you are worried about the way your scheme is run, you can seek advice from The Pensions Regulator which regulates the way companies run their pension schemes and can investigate problems and force companies to take action.
