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Cancelling a Pension

  • 06-12-2011 2:33pm
    #1
    death1234567
    Registered Users, Registered Users 2 Posts: 3,344 ✭✭✭


    Hi,

    I recently took out a pension and have been paying a standing order into it for 5 months. Since then my employer has opened a new pension scheme from Jan 1st 2012 that I want to enrol in (its better than my current one as there's an employer contribution). Is there a way I can get out of my current PRSA pension and get my money back? Is there any point maintaining two different pensions? It seems inefficient to contibute 50% of my pension pot into two pensions rather than 100% into a single one.


Comments

  • #2
    tenchi-fan
    Closed Accounts Posts: 3,339 ✭✭✭tenchi-fan


    death1234567 wrote: »
    Hi,

    I recently took out a pension and have been paying a standing order into it for 5 months. Since then my employer has opened a new pension scheme from Jan 1st 2012 that I want to enrol in (its better than my current one as there's an employer contribution). Is there a way I can get out of my current PRSA pension and get my money back? Is there any point maintaining two different pensions? It seems inefficient to contibute 50% of my pension pot into two pensions rather than 100% into a single one.

    If both are PRSAs you can easily transfer the balance from one to the other.

    You cannot take your money back.


  • #3
    coylemj
    Registered Users, Registered Users 2 Posts: 25,624 ✭✭✭✭coylemj


    +1 If your employer scheme is revenue approved then there's no reason why you couldn't stop making payments on the old scheme and transfer the money to the new scheme. However after only 5 months the people managing your original PRSA might be looking for early exit fees (for all the 'admin' work they did to set it up), it might be worth your while just leaving the money there (with no new contributions) for a year or so and then transfer it.


  • #4
    iminireland
    Registered Users Posts: 47 ✭iminireland


    coylemj wrote: »
    +1 If your employer scheme is revenue approved then there's no reason why you couldn't stop making payments on the old scheme and transfer the money to the new scheme. However after only 5 months the people managing your original PRSA might be looking for early exit fees (for all the 'admin' work they did to set it up), it might be worth your while just leaving the money there (with no new contributions) for a year or so and then transfer it.


    You can transfer the PRSA to your employers new scheme, it is very easy to do and the adviser on the employer scheme should handle all the paperwork for you.

    In relation to exit fees/charges applying if you move your money from the PRSA, there will be none. Never was and never will be exit fees on a PRSA so you can transfer it straight away, no need to wait.

    There is only one way of getting your PRSA contributions back:

    Under Section 109 of the Pensions Act, 1990, as amended, where the assets do not exceed €650, no contributions have been received for 2 years and a period of 3 months has expired since the PRSA Provider wrote to the contributor advising the contributor to transfer his/her PRSA assets to another PRSA or pension arrangement or to make further contributions.

    In english, you have to wait 2 years to apply for a refund and the value of your PRSA at the time needs to be €650 or less.


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