Pension question

Arist

Hi,

In a previous job from 1992 to 1998 I paid into a pension fund, this was compulsory at the time. I had completely forgotten about this until today when I found a “Benefit Statement and Trustee Report” detailing my pension at retirement, death benefit, etc. I am now a public servant and paying superannuation since 2000, so I am wondering what are my options with the private pension fund.

e.g. Can I cash it in or transfer it to my superannuation or do I have to leave it and claim it when I retire? Ideally I would prefer to cash it in and pay a few bills. I’m not sure how much is there but it looks like I paid in about €2000.

Any help and advice greatly appreciated.

coylemj

You can't transfer money into a public sector pension fund for the simple reason that there is no 'fund'. Public sector (Gardai, nurses, teachers, civil servants etc.) pensions are paid from current revenue i.e. taxes so forget that option.

If you only paid £2,000 then the pension won't be great but if they are quoting a pension amount then it sounds like a Defined Benefit (DB) pension which is an endangered species. Legally you won't be allowed to cash in the pension unless you are in poor health so the best you can hope for is that the trustees of the fund will allow you to draw a pension from age 50 but there would be an actuarial penalty for drawing it at such an early age so if you can afford to, leave it until as late as possible to draw the pension.

Even if the trustees allow you to withdraw the money, you will only be allowed to put into a PRSA where you won't be allowed to access the money and the money you get will be nowhere near what it would cost to buy an annuity similar to the projected pension they are quoting so leave the money where it is.

Arist

Sounds like good advice. Thanks very much.