UKAEA Pensions

Skip Navigation

Home Page

Refund of Contributions

If you have less than 2 years’ qualifying service you may choose to take a refund of the basic contributions you have made to the Scheme or you may request an estimate of the transfer value which could be paid to a new pension arrangement. The option to take a refund of contributions is only available if you have less than a total of two year's qualifying service in the scheme, including service transfered from another occupational pension scheme, and have not transfered in benefits from a Stakeholder or personal pension arrangement. If you choose to have a refund of contributions, the refund you receive will be your contributions (plus compound interest) less:

  • a payment to the Department of Work and Pensions to cover the cost of buying you back into the State pension scheme (essentially this is the difference between the full rate of National Insurance contributions and the reduced rate you have been paying as a Scheme member);
  • 20% tax deduction (because your initial contributions attracted tax relief).