Single Pension Scheme - Public Sector

I recently finished a 14 months contract with the public sector. I received an email from then organisations pensions team that I can take the contributions to the single pension scheme as a refund now.

I have a paid up Defined Contribution pension and I will be joining a new Defined Contribution employer pension scheme.

If I request a refund of the contribution from the public service pension now, will this affect my defined contribution pensions when I access in retirement in years to come? Will it affect the tax free lump sum from these DC pensions?

Any advice would be greatly appreciated, thanks.

No and no.

By accepting refund of contributions, you will have no preserved benefits, and it will be as if you never joined the SPSPS.

Kram_B said:

I recently finished a 14 months contract with the public sector. I received an email from then organisations pensions team that I can take the contributions to the single pension scheme as a refund now.

Click to expand...

There is a 24 month vesting period in the Single Scheme. This is the minimum service you need before you become eligible for pension benefits. If you think you may be contracting within the Public Service again you might consider leaving your contributions there for now. You would only need another 10 months service for vesting purposes. I don't know how long a break interval someone can have before rejoining and completing the vesting period. Possibly 24 months.

As Protocol has said, a refund will not impact your other pension entitlements. There will be a 20% deduction from your contribution refund, as per Revenue rules.

Thank you all for your responses.

I don’t think I will return to the public sector in the future. It’s good to know if I request the refund from the single pension scheme it won’t affect my DC pensions in years to come.