What will happen to your pension scheme?

When you are seconded, you have two options. The choice is yours, but the change has to be made via your employer.

Your options are:

Your pension scheme remains unchanged.

-If you are seconded for a short period of time (up to 183 days), it is often a good idea that your contributions continue and that we do not change your pension scheme.

Your pension scheme is changed into a paid-up policy, and we establish a non-deductible pension scheme.

If you are seconded for a long period of time, the best solution is often that your employer stops contributions to your current pension scheme before you leave. The tax benefits will typically not be available while you are seconded.

Instead, your employer can make contributions to a non-deductible pension scheme. That is called a section 53A scheme.

If possible, you will have the same insurance cover as before. But because the contributions are not tax-deductible, the disbursements are exempted from taxation.