If you take a career break from HBOS, you are required to leave the Scheme and contributions, including those made by HBOS, will stop.
You have a number of options regarding your individual retirement account, depending on how long you have been a member of the Scheme:
If you have been a member of the scheme for less than 3 months
You'll receive a payment of an amount equal to the total payments made by HBOS into your pension scheme (this does not include HBOS's matching contributions), less income tax and NI. You'll also receive a refund of any contributions that you have personally made, less tax.
If you have been a member of the scheme for at least 3 months but less than 24 months
You can either take a transfer value to an alternative pension scheme or receive a payment equal to the total payments made by HBOS into your pension scheme (this does not include HBOS's matching contributions), less income tax and NI. You'll also receive a refund of any contributions that you have personally made, less tax.
If you have been a member of the scheme for 24 months or moreYou can either take a transfer value or you can leave your benefits in the Group Money Purchase Scheme where the funds will remain invested.
Any payment made to you by HBOS after leaving the Group Money Purchase Pension
Scheme is subject to income tax and NI. If the payment is made after you've received
your P45 then HBOS is only able to deduct basic rate tax. Higher rate tax payers
are therefore responsible for ensuring any further tax liability is paid to HM Revenue &
Customs direct (this will be based on your total earnings for the tax year).
Please call HR Advice and Guidance on 08456 40 60 80 (Option 5) to
receive general information on how this might affect you.
