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Employer reminder of 24 hour break required for re-employed pensioners

When a pensioner decides to re-join the scheme after retirement (including retire and return) there must be a 24-hour break from when the employment ends (last day of membership) and the date the member returns to work.

We have seen an influx of member records not showing that the member has had a 24-hour break before re-joining the scheme. If the member does not take a 24-hour break they are not entitled to retirement benefits.

When adding a pensioner back into the pension scheme, you must ensure there is a 24-hour break on their record. For example, if a member’s date of retirement (and last day of membership) is on the first of the month, the re-employment date must be no earlier than the third of the month. It cannot be the second of the month.

The 24 hours break rule is also applicable to any bank or locum posts etc. added to a member’s record.

If the member is new to your organisation, you must ensure that you confirm with the member their last date of employment with their previous employer, to ensure that a 24-hour break has taken place.

For members who are taking partial (drawdown) retirement, they do not require a 24-hour break. Care must be taken to ensure you identify the correct reason for retirement to ensure the member’s pension record is correctly updated.