What if you leave

What happens if you leave the Final salary Scheme?

You may be concerned if you and other high earners transfer out of the scheme the remaining lower earning members will be left disadvantaged. Fortunately, this is not normally the case.

Trustees have a legal obligation not to favour one member over another and will therefore set a transfer value based on the fund’s future liability to all the schemes members.


What to do if you receive a letter suggesting you leave?

Some schemes are actually keen to reduce their long term liabilities to members who have large pension funds. If this is the case you may receive a letter offering you an Enhanced Transfer Value (ETV) if you transfer out of the scheme before a certain date.

If you have received such a letter, even if the offer date has passed, you should contact us for advice.

The trustees are clearly concerned about the long term sustainability of the scheme and the ability of the fund to meet its future obligations.