TfL Pension Fund

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Leaving service

If you stop working for your employer, you are still entitled to any pension benefits you have built up as a contributing member.

Types of benefit on leaving

The type of benefit you receive depends on how long your pensionable service is and how old you are.

Less than two years

If your pensionable service is less than two years when you leave, you are entitled to a refund of your contributions.

If your pensionable service is more than three months you may, as an alternative, choose to retain a deferred pension under the Fund or transfer the value of your pension to another approved pension arrangement.

More than two years

If your pensionable service is more than two years and you are under age 60 when you leave, you are entitled to a deferred pension or a transfer of the value of your pension to another approved pension arrangement.

Age 50 or over

If you are over age 50 and your pensionable service is more than three months, you might be able to take a reduced pension for early retirement.

Deferred pensions

If you are no longer employed by one of the participating employers but have chosen to leave your benefits in the Fund, your pension is known as a deferred pension.

The amount you will be paid every year is calculated as 1/60 x pensionable service x pensionable salary

For existing members there is a deduction of £10.10 a year for pensionable service from 1 October 1993.

You usually take your pension at age 60 but you might be able to take a reduced one from age 50. There is more information about this in our Retirement section.

You will need to ensure that you keep the Fund Office advised of your current address and contact us at least three months before you reach age 60. At that time, you will need to decide whether to claim your pension from age 60 or to defer it for at least six months and earn a bonus pension increase of eight per cent for each year it is deferred. This increase is in addition to annual pension increases which are also applied to your pension. Please note that if you do not elect to receive the bonus pension before you reach age 60, this option will lapse.

Transferring out

You can transfer the value of your pension benefits to another approved pension such as a:

New employer's scheme
Personal pension
Stakeholder pension.

You can choose to transfer at any time before you retire.

The transfer value is the cash equivalent of your deferred pension. This amount will be paid to your new pension provider, who will advise you of the benefits you get by making the transfer. The amount paid is calculated by the Trustees on the advice of the Actuary.

Refund of contributions

If you have less than two years' pensionable service, you can choose a refund of your own contributions.

If you joined the Fund after 31 March 2010, and have less than three months' pensionable service, your only entitlement is a refund of your own contributions.

As a member of the Fund, you are contracted-out of the State Second Pension (S2P) and pay National Insurance contributions at a reduced rate. If you choose a refund it will be necessary to reinstate you into the S2P and a statutory deduction is made from your contributions as your share of the cost.

As your contributions are deducted from your salary before tax has been taken, HM Revenue & Customs reclaims some of that tax at a special rate, currently 20 per cent. This is also deducted from your refund of contributions.

The employer's contributions cannot be refunded.