Leaving the plan

Your membership in the Plan will end when you leave Telefónica or if you cease making any monthly contribution. If you cease making contributions but remain an employee of Telefónica, you can re-join the Plan at any time. If you don’t re-join the Plan you will be auto-enrolled on each of Telefónica’s three-yearly re-enrolment dates.

 

Please note, your life assurance cover is likely to reduce to 2x  your basic salary if you opt-out of the Telefónica Pension Plan. The life assurance benefit provides your beneficaries with a lump sum payment as a multiple of your salary in the event of your death whilst working at Telefónica. If you opt-out of the Plan you will also no longer be eligible for our income protection scheme if you leave the Plan.

 

For more information on how your benefits could be impacted by leaving the Plan please click here.

 

If you leave the Plan you may wish to also consider what will happen to your pension savings. The choice is likely to depend on when you joined the Plan, your length of service, whether you made contributions by salary sacrifice (the default) and which section of the Plan you were part of.

 

As of 1 October 2015, members of the Plan will no longer be entitled to short service refunds if you leave employment (or opt-out) with less than two years qualifying service. Please note, the change only applies to individuals who became members on or after 1 October 2015, or anyone who re-joined an arrangement having already taken a refund or transferred out.  If you have less than 30 days service, you’ll still be able to request a short service refund of your personal pension contribution(s). The tables below set out your options.

 

 

Leaving the Plan

Core DC Members with or without salary sacrifice
Auto-enrolled Members with or without salary sacrifice
Join date post 1 October 2015 Ability to receive a refund of contributions when less than 30 days in the Plan to align with the window for automatic enrolment purposes. Ability to receive a refund of contributions when less than 30 days in the Plan to align with the opt-out window for automatic enrolment purposes.
Leaving the Plan Unable to receive refund of contributions unless opt-out received within the designated opt-out window. Unable to receive a refund of contributions unless opt-out received within the designated opt-out window.

 

 

If you joined the Plan before 1 October 2015 then please see the below options to understand what will happen to your contributions if you leave the Plan. This also confirms what you could do if you’re an ex-final salary member and have Defined Benefit (DB) savings. Please note that from 1 October 2017, all existing options for existing members will be removed and replaced with the above options.

Salary Sacrifice

Less than 3 months

No options - you would lose the benefit and the money is paid into the Trustee Unallocated account (TRUAC).

Between 3 months and 2 years

Your personal Plan will remain with Standard Life and the savings you built up in the Telefónica UK Pension Plan will remain invested in the same funds that made up your Telefónica Pension Plan fund. The same fund charges will also apply. You will be able to change your investment choice at any time and will become an individual customer with Standard Life.

  • Transfer your monies to another Pension arrangement.
  • Transfer your benefits to an IBOP (Individual Buy-Out Plan).

(Please note, if Standard Life doesn’t receive a response within 12 months of you leave Telefónica, your Plans benefits will be transferred to an IBOP).

Over 2 years

  • You can leave the benefits in the Plan where they will continue to be invested until your retirement. At retirement, the accumulated value will be used to purchase the benefits of your choice.
  • Transfer your monies to another Pension arrangement.
  • Transfer your benefits to an IBOP (Individual Buy-Out Plan), no time limit.

 

Non-Salary Sacrifice

Less than 3 months

  • If you opted to make your contributions as a non-salary sacrifice basis when you joined the Plan you will receive an automatic refund of your employee contributions (e.g. a refund of your accumulated contributions less tax (currently at 20%)). The employer contributions will be paid into the Trustee Unallocated account (TRUAC).

Between 3 months and 2 years

  • Transfer your monies to another Pension arrangement.
  • Transfer your benefits to an IBOP.
  • Take a refund of your employee contributions (e.g. your accumulated contributions less tax).- Employer contributions will be paid into the Trustee Unallocated account (TRUAC).

(If Standard Life doesn’t receive a response within 12 months your Plans benefits will be transferred to an IBOP).

Over 2 years

  • You can leave the benefits in the Plan where they will continue to be invested until your retirement. At retirement, the accumulated value can be used to purchase the benefits of your choice.
  • Transfer your monies to another Pension arrangement.
  • Transfer your benefits to an IBOP (Individual Buy-Out Plan), no time limit.

 

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

Our Administrators will automatically get in touch with you to provide further information on each of these points should you leave the plan.

 

Having been with the Plan for more than 2 years, you have two options:

 

 

  • Leave your benefits in the Plan until your retirement.
  • Transfer the full value of your benefits to another approved arrangement, which is able and willing to accept a transfer payment

 

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

Salary Sacrifice

Less than 3 months

No options - you would lose the benefit and the money is paid into the Trustee Unallocated account (TRUAC).

Between 3 months and 2 years

Your personal Plan will remain with Standard Life and the savings you built up in the Telefónica UK Pension Plan will remain invested in the same funds that made up your Telefónica Pension Plan fund. The same fund charges will also apply. You will be able to change your investment choice at any time and will become an individual customer with Standard Life.

  • Transfer your monies to another Pension arrangement.
  • Transfer your benefits to an IBOP (Individual Buy-Out Plan).

(Please note, if Standard Life doesn’t receive a response within 12 months of you leave Telefónica, your Plans benefits will be transferred to an IBOP).

Over 2 years

  • You can leave the benefits in the Plan where they will continue to be invested until your retirement. At retirement, the accumulated value will be used to purchase the benefits of your choice.
  • Transfer your monies to another Pension arrangement.
  • Transfer your benefits to an IBOP (Individual Buy-Out Plan), no time limit.

 

Non-Salary Sacrifice

Less than 3 months

  • If you opted to make your contributions as a non-salary sacrifice basis when you joined the Plan you will receive an automatic refund of your employee contributions (e.g. a refund of your accumulated contributions less tax (currently at 20%)). The employer contributions will be paid into the Trustee Unallocated account (TRUAC).

Between 3 months and 2 years

  • Transfer your monies to another Pension arrangement.
  • Transfer your benefits to an IBOP.
  • Take a refund of your employee contributions (e.g. your accumulated contributions less tax).- Employer contributions will be paid into the Trustee Unallocated account (TRUAC).

(If Standard Life doesn’t receive a response within 12 months your Plans benefits will be transferred to an IBOP).

Over 2 years

  • You can leave the benefits in the Plan where they will continue to be invested until your retirement. At retirement, the accumulated value can be used to purchase the benefits of your choice.
  • Transfer your monies to another Pension arrangement.
  • Transfer your benefits to an IBOP (Individual Buy-Out Plan), no time limit.

 

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

Our Administrators will automatically get in touch with you to provide further information on each of these points should you leave the plan.