6.2.1 Members who resign with 2 or more years’ qualifying service, or have transferred benefits into the CSP arrangements from a personal pension scheme or other non-occupational pension arrangement, will continue to have benefits in the CSP arrangements, unless they transfer them to another pension scheme. The benefits are preserved until the member decides to claim them at or after scheme pension age and are increased in line with the rise in prices. The member may decide to claim their preserved benefits before scheme pension age but must meet certain criteria (see ‘Paying a preserved award early (paragraphs 6.2.10 and 6.2.11).
6.2.2 We use the term ‘deferred member’ for staff who leave with preserved benefits.
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6.2.4 When a member leaves within their first three months of service they will usually receive a refund of their contributions (via payroll).This is an automatic process if the member leaves within one month. If, however, the member leaves after one month but within three months, you are required to seek instruction from the Scheme Administrator before processing the refund. This is to ensure that the member is due a refund and not preserved benefits due to, for example, already having preserved benefits for previous service.
6.2.5 If they stay over three months but under two years, they can choose to have a refund of their contributions or to transfer out their accrued pension.
6.2.6 The Scheme Administrator will offer this option to the member. If the member opts for a refund of contributions, the Scheme Administrator will reimburse the member the amount of contributions they have paid, less tax.
6.2.7 You cannot be reimbursed for employer contributions (ASLCs).
Please note: Table 1 below shows what action to take when a member of the CSP arrangements resigns from service or is dismissed for efficiency purposes. Table 2 shows what action to take when a partnership member resigns from service or is dismissed for efficiency purposes.
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6.2.10 Members who joined the CSP arrangements on or before 5 April 2006 can receive their preserved award before reaching pension age if they are:
6.2.11 Members who joined the CSP arrangements on or after 6 April 2006 can receive their preserved award before reaching pension age if they are:
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6.2.13 You can enhance active members’ pension benefits or transfer terms by making additional contributions to the scheme to purchase added pension.
6.2.14 The Scheme Administrator can advise you of the cost of providing additional pension for a particular member. You must ask the Scheme Manager to agree to what you are proposing before you make any formal offer to the member. Section 3.4 (‘Scheme Flexibilities’) gives more advice on reserved decisions.
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Standard action for resignation and dismissal for members in classic, classic plus, premium, nuvos and alpha based on employer interface type. |
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Compendia Interface Type |
Action |
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Standard and Manual Interface
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Resignation – notify your payroll that the member’s service is ending. Details of the member’s resignation will then be provided to the Scheme Administrator via the monthly interface (see Note A below). The Scheme Administrator will then take appropriate award action (see Note B below). |
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Dismissal – notify your payroll that the member’s service is ending and pass the details to the Scheme Administrator for appropriate award action by completing the Request for Services form available in the Employer section of the website (see Note B below). |
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Full/Quarterly Interface |
Resignation and Dismissal – notify your payroll that the member’s service is ending and pass the details to the Scheme Administrator for appropriate award action by completing the Request for Services form available in the Employer section of the website (see Note B below). |
Note A: It is important to ensure that the information provided on the interface is accurate and up to date to allow the Scheme Administrator to identify and process these leavers. The ‘Standard Interface Developers Guide’ should be followed to ensure the correct data items are provided, however, the following data items are essential for processing resignations:
Note B: An ‘award’ for someone resigning with preserved benefits is simply notification of the benefits that they will receive when they eventually retire.
6.2.15 The Scheme Administrator will, among other things, give members information about:
6.2.16 Blank
6.2.17 Blank
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Table 2 Standard action for resignation and dismissal for partnership |
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As soon as you learn of a resignation or dismissal, pass the details to the provider (as described in the Manage Submissions Interface Guide issued in EPN533) and;
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Records: Keep any records that can affect the members’ pension. Provider action: The provider will contact the member detailing the arrangements. |
6.2.18 For pension purposes, employees who are dismissed are usually treated as if they had resigned. You can, if you wish, also pay them a lump sum compensation payment as long as they have at least one year’s service. You will meet the cost of the compensation payment.
6.2.19 The Scheme Administrator, on your request, will calculate the maximum compensation payable on dismissal on the grounds of efficiency. You then need to decide how much of this compensation calculation, if any, you want to pay by following the guidance attached to EPN 471.
Please note: Compensation is not payable to employees dismissed on the grounds of efficiency if they are over their scheme pension age. The scheme pension age for classic, classic plus and premium members is age 60. For nuvos members the scheme pension age is currently age 65. In alpha, a member’s Normal Pension Age (NPA) is the later of their State Pension Age (SPA) or age 65.
6.2.20 Decisions about compensation should be based on the employee’s health condition(s) and circumstances. Both long term and intermittent health conditions can be considered; if the condition is not grounds for medical retirement, but affects attendance and/or performance. It is important to note that unsatisfactory attendance or poor performance dismissal criteria should not be applied in such cases.
6.2.21 If you are dismissing a member on efficiency grounds caused by medical reasons, you must first consider them for Ill Health Retirement (see ‘Ill Health Retirement (IHR)’ (section 6.3.7) for details).
6.2.22 Once a decision has been made to dismiss an employee for efficiency reasons, and compensation is due, the Scheme Administrator will calculate the level of compensation payable to the member based on your instruction.
6.2.23 All compensation payments must then be paid through your payroll, as announced in EPN556. The Scheme Administrator will calculate the member’s preserved benefits and inform the member as described in 6.2.15 (‘Scheme Administrator action’).
6.2.24Where a member has taken partial retirement, only service not taken at partial retirement is used in the compensation calculation. Service taken at partial retirement qualifies only.