My pension if I leave
If you leave you can transfer your pension to another pension provider, opt for a refund, or leave your pension with us. It all depends on your length of service and what your employer has chosen to provide.
Leaving after 2 years
If you leave after 2 years, we will automatically keep your pension with us. Your pensionable service might not be the same as your length of service with your employer.
While your pension is with us, we will continue to add increases to your pension until you retire, die, or transfer it to another pension provider.
If you have pensionable service in another section of the Church Workers’ Pension Fund (CWPF), and this is with the same employer, this counts towards your 2 years.
Leaving with less than 2 years’ service
If you leave before 2 years, you have two choices.
- Transfer your pension to another provider.
- Opt for a refund of any contributions you saved.
Transferring your pension is usually the best option, as your money stays in a pension. You also get to keep the contributions your employer paid in.
If you opt for a refund, we will deduct income tax. We will also refund any contributions your employer paid back to them.
The two-year service requirement is a common rule across many 'defined benefit' pensions and ensures that employees contribute for a minimum period before qualifying for a pension. This rule helps pension schemes manage costs and maintain sustainability.
Some employers provide the same options for those who complete 2 years’ pensionable service for anyone who has completed 30 days service. You can check with us which applies to your pension, or ask your employer.
Can I carry on paying into my pension?
No, you can only pay into your PB Classic pension while you are an active member. Once you leave, contributions stop.
Transferring my pension - what to know
You can transfer your pension to another pension provider at any point before you access your pension. This could be a new employer's pension scheme, or you might want to consolidate your pensions.
If you leave before 2 years there is a time limit to transfer (although we can flex this). This type of transfer is known as a ‘cash transfer sum’ and there are different rules from normal pension transfers.
You must tell us within three months of leaving if you want to transfer and the transfer needs to be completed within 6 months of leaving work.
In all other circumstances, there is no time limit to transfer - you can transfer at any time before you retire.
If you move overseas, you might want to move your pension with you. You can do this by following the usual transfer procedure, but we need to do a few more checks than usual.
We also need to check you are moving your pension to a pension scheme on the Government's recognised pension scheme list. You can check the list here.
How does a transfer work?
A pension transfer means giving up your pension in return for a sum of money, which is called a ‘transfer value’. Your transfer value could be a large amount of money which you could transfer to another registered pension scheme to then take as cash or invest.
While it is invested it could go up in value, but there is a risk it could go down in value too. Once you transfer your pension, there are lots of different ways you can use your money, and even leave it to loved ones.
Is transferring a good idea?
Transferring can be worth exploring, depending on your circumstances. Having more flexible ways to access your money can really help if you are in poor health and your life expectancy is limited, or you are single or have no dependents.
You might want to get your hands on more money up front and even leave money to your loved ones. But, there are risks to doing this. Transferring means, you will give up your pension and the guarantees and security that go with it, such as:
- a guaranteed pension that lasts as long as you live
- yearly increases in line with inflation, up to a cap
- the option of a tax-free lump sum when you retire
- the option of a pension for your spouse or civil partner after you die
Because of these guarantees, if your transfer value is more than £30,000 you must take professional financial advice first. To make it easy for you to get advice, we have partnered with Ecclesiastical Financial Advisory Services (EFAS) who can give you the advice you need.
If you transfer your pension, you cannot transfer it back to us.
Should I transfer?
Think carefully before you transfer.
Other pension schemes may provide a different type of benefit, so it can be difficult to make a comparison. If you are in doubt whether a transfer is in your best interests, we strongly recommend that you take independent financial advice.
Here are a few things you should consider:
- Before you transfer, check your new pension provider’s Annual Management Charge. Higher fees mean more of your money is taken as charges.
- Will consolidating your pensions make it easier for you to keep track of where your pensions are, and how they are performing?
- If you want to move your money out of your new pension scheme, can you easily do this?
- What are your new investment choices, and if you would like to invest ethically, do they have an ethical option?
- Check what will happen to your pension if you die.
If you would like to transfer, head to PensionsOnline (just go to the handy link below to log in) and you can run your transfer value and download the forms you need to transfer.