How to continue old pension with new employer

godtabh

I have an existing pension.

My new employer has its on pension scheme and wont facilitate my current pension. I dont want another pension (keep it simple)

Is it possible for me to be able to pay into my current pension? When I rang up my pension provider they just said ask your employer to sort it.

Liam D Ferguson

Depends on what type of pension your existing pension is -

• Occupational Pension Scheme of your previous employer ("Company Scheme")
• PRSA
• Personal Pension

Is your new employer paying into their nominated pension scheme?

godtabh

It is a PRSA from a previous employer.

My current company will not be contributing

Liam D Ferguson

Then you can continue contributions to your existing PRSA by Direct Debit from your own bank account. Ask the provider for a Direct Debit Mandate to do this. You'd have to claim your tax relief directly from Revenue but they will usually do that by increasing your tax credits so you only need to do it once unless you change your contribution.

Paying into your employer's PRSA has the advantage of immediate and automatic tax relief because the contributions are deducted from salary.

Alternatively you could join your employer's PRSA and transfer your existing fund into it, if you want to keep everything in the one place. But only do this if you're happy with employer's choice of PRSA - check out fund choice and charges.

coylemj

Liam D Ferguson wrote: »

Alternatively you could join your employer's PRSA and transfer your existing fund into it, if you want to keep everything in the one place. But only do this if you're happy with employer's choice of PRSA - check out fund choice and charges.

+1 It sounds to me like your new employer is facilitating a PRSA for it's employees only because they have to, they are not contributing themselves and won't facilitate new employees transferring money in from other schemes.

Why do they have a problem with you transferring in if they're not contributing anything? It's not like it's going to cost them anything surely.

Liam D Ferguson

coylemj wrote: »

Why do they have a problem with you transferring in if they're not contributing anything? It's not like it's going to cost them anything surely.

I'd imagine that when godtabh says that the new employer won't faciliate the existing PRSA, they won't facilitate ongoing contributions into it, but rather are insisting that their existing provider is used, so that they will only have to administer one Direct Debit etc.

The employer wouldn't have any say in whether or not godtabh transfers the existing fund into the new PRSA if that was the road chosen.

godtabh

What I would like is one single pension.

I have had a few employers in the passed and will probably have a few in the future.

I've PRSA with New Ireland and was happy with them (feedback welcome).

Is it a big process to apply for tax credits? Does it take long?

Liam D Ferguson

godtabh wrote: »

Is it a big process to apply for tax credits? Does it take long?

Not a big deal. You get a PRSA1 Certificate from New Ireland and send it to your local Inspector of Taxes. They adjust your tax credits. Shouldn't take more than a couple of weeks.

The only thing is that Revenue will assume that you're continuing to pay the same contribution until you tell them otherwise. So any time your PRSA contribution changes, you need to remember to write to Revenue again to tell them.

godtabh

Liam D Ferguson wrote: »

Not a big deal. You get a PRSA1 Certificate from New Ireland and send it to your local Inspector of Taxes. They adjust your tax credits. Shouldn't take more than a couple of weeks.

The only thing is that Revenue will assume that you're continuing to pay the same contribution until you tell them otherwise. So any time your PRSA contribution changes, you need to remember to write to Revenue again to tell them.

Spot on.

its amazing that I have to come to boards to get this information.

I asked my current provider, my new employer and their provider what I needed to do and not once was this suggested.

HowFinancial

OK You have an old PRSA from previous employment, and your new employer has a PRSA facility. I note you want one pension vehicle only.

1. Go with your new employer's PRSA (simpler from employer's perspective as they have paperwork already done & not surprising they don't want to keep track of another set of paperwork for pensions).
2. As soon as this is set up talk to the provider (e.g. New Ireland, Irish Life) directly and tell them you want to "transfer in" the value of your old PRSA. They will be happy to oblige.