Preservation

The law (Pension Schemes Act 1993) that protects a member’s benefits that he has accrued in a scheme where he leaves before normal retirement date, with two or more years service. Now, members who have more than three months service (but not yet two years) have a right to a transfer of their cash equivalent, where previously they were entitled only to a refund of member contributions (which still applies to very early leavers with less than three months).