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Leaving the Plan

Your membership of the Plan will end when you leave the employment of the Company. You can also leave the Plan (while remaining an employee of the Company) by giving six weeks' notice to the Plan administrators.

If you chose to leave the Plan, you will only be able to rejoin the Plan in the future with the agreement of the Company but will be admitted as a Pension Only member (see Joining).

If you chose the leave the Plan, your options depend on whether you have:

Less than 3 months

If you joined the Plan and opted to make contributions on a Salary Sacrifice basis, no benefits are payable if you leave the Plan within 3 months of your date of joining the Plan. Take a look at the Salary Sacrifice page to find out more.

If you did not opt to make contributions on a Salary Sacrifice basis when you joined the Plan and leave within 3 months of joining the Plan, you will receive a refund of the value of your accumulated contributions less tax (currently at 20%). No benefits will be received in respect of the contributions paid by your employer.

Click here to see an example.

A member leaves after 18 months of membership of the Plan having not opted to make contributions under Salary Sacrifice.

Their contributions were £50 per month

On leaving the member would receive a net refund of:

  • 18 x £50 = £900
  • Less Tax at 20% = £180
  • Net refund is £720 (plus investment income — the amount may be lower if investment returns are negative)

3 months or more but less than 2 years

If you have been in the Plan for 3 months or more but less than two years, you have two options:

  • A refund of the value of your accumulated contributions less tax (currently at 20%). No benefits will be paid in respect of the contributions made by your employer which includes contributions paid to the Plan on a salary sacrifice basis. Please see the Salary Sacrifice page to find out more.
  • Transfer the full value of your Retirement Account to another approved arrangement, which is able and willing to accept a transfer payment. You will have 3 months to decide to take a transfer from the date that a letter summarising your options is sent to you by O2 Pensions Administration.

Click here to see an example.

Karen leaves the Plan after 12 months. She opted not to make contributions through Salary Sacrifice when she joined the Plan. Her contributions were £50 per month.

Karen's options are :

  • Refund:
    12 x £50 = £600
    Less Tax at 20%* = £120
    Net refund is £480 (plus investment income - the amount may be lower if investment returns are negative)
  • Transfer
    A transfer of the entire Retirement Account including £600 contributions made by Karen and £600 contributions made by the Company (plus investment income - the amount may be lower if investment returns are negative).

* Note tax charge is 20% on first £10,800 and 40% on excess.

More than 2 years

If you have been in the Plan for more than two years, you have two options:

  • Leave your accumulated contributions in your Retirement Account where they will continue to be invested until retirement. At retirement, the accumulated value will be used to purchase the benefits of your choice. (You may retire early in the same circumstances as set out under Early Retirement)
  • Transfer the full value of your Retirement Account to another approved arrangement, which is able and willing to accept a transfer payment.

Click here to see an example.

A member leaves the Plan after 24 months.

Their contributions were £50 per month.

On leaving the member would receive a deferred Retirement Account of:

  • 24 x £50 = £1,200
  • Plus a matching Company contribution of £1,200
  • Giving a deferred Retirement Account of £2,400 (plus investment income — the amount may be lower if investment returns are negative)

Note: if you want to transfer to another arrangement, you will need to ask the administrators for a quote of the transfer value of your fund.