Pension
[ch 8: page 68]An employee who is made redundant can transfer their pension and can use any redundancy payment to make additional pension contributions. Advice should be sought from the Pensions Advisory Service or a union pensions expert.
Employees can keep their pension benefits where they are, and even continue contributing to the workplace scheme, or transfer them to a new pension scheme.
If the employer agrees, an employee can give up some of their redundancy payment as an employer contribution to their pension. This is known as a “redundancy sacrifice”.
Any additional payments above the annual allowance are subject to tax.