TfL Pension Fund

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Leaving service

If you leave your job or are made redundant before you are 65 years of age then you can choose one of the following options:

A deferred pension
A transfer to another approved pension arrangement
A refund of contributions if your pensionable service is less than two years
An early retirement pension if you are 50 or older

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 may 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.

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.