Leaving service options letter for a defined benefit scheme

Instructions for use – leaving service options letter for a defined benefit (DB) scheme

The model document below is a sample leaving service options letter for a DB scheme.  Information will need to be tailored to the particular scheme/member and you may wish to amend the layout or add additional information that you feel is useful for the member. 

Where figures are used, they are for illustrative purposes only.

The model document contains endnotes which provide further information for the person preparing the leaving service options letter. These deal with:

   –  information to be given where a pension adjustment order is in place

   –  an instruction that only the options that are available to the particular member should be presented

   –  if there is an option for alternative benefits

   –  a time limit in which the member must request a transfer

   –  any additional benefits that are payable and whether any amounts have been transferred without the member’s consent 

   –  provisions under which benefits may/will be increased

   –  modification of the risk statement.

While the Authority considers that this sample leaving service options letter has been prepared in accordance with the relevant legislation at 7 April 2015, anyone preparing a leaving service options letter should satisfy themselves that the information they give is compliant with the applicable legislative requirements.