Few people work for one employer and stay a member of a single pension scheme all their lives until they retire. It's common for people to build up a patchwork of pensions - perhaps some occupational salary related pension from some jobs and personal or stakeholder pensions, perhaps when working for an employer who did not provide an occupational pension scheme - before they retire.
Early leavers in occupational schemes will generally have two choices:
If you have worked for less than two years you will probably either be able to get your contributions back less tax, or transfer the full value of your pension to a new pension scheme;
If you have been in the scheme for more than two years, you will either be able to leave your pension where it is (called a "deferred" or "preserved" pension) or move it to a new scheme.
if you are in a money purchase scheme it is relatively straightforward to see the effects and benefits of moving it or keeping it where it is.
Deciding what to do when leaving a salary related pension is very complicated area, particularly if you are deciding whether to transfer your pension fund to a new employer. You will need specialist advice. There's more about deferred pensions on the TPAS website.
