New Pension Rules When Workers Change Jobs

Published / Last Updated on 06/02/2006

New regulations that were published recently will make it easier for workers changing jobs to build up pension rights.   The changes in occupational pension scheme regulation means that where someone leaves their employer's pension with at least three months qualifying service (it is currently 2 years service), but with no rights to a pension from this scheme, they will be entitled to receive either a cash sum to be transferred to another pension or a refund of his contributions. 

The new regulations have been made under powers in the Pension Act 2004 and come into force on A-Day (the name of the day when huge new Pension laws start) - see our Pension Simplification Centre

Our view 

Guess who picks up the administrative cost for this - the beleaguered employer - not the Government.

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