Pension

sm3ar

Started in a new company and they said there is some benefit of putting in old pension into new scheme besides leaving it sit in old scheme. Something like, if you don't, you've to wait 2 years for some extra benefit to kick in otherwise...anyone know what they are on about?

ANXIOUS

If you were in your existing pension for more than two years and transfer it into your new pension you will get to keep your new companies contributions to your new pension even if you are there less than two years.

sm3ar

ANXIOUS wrote: »

If you were in your existing pension for more than two years and transfer it into your new pension you will get to keep your new companies contributions to your new pension even if you are there less than two years.

Basically does this mean they don't match my contribution in new company otherwise for 2 years?

Ace2007

ANXIOUS wrote: »

If you were in your existing pension for more than two years and transfer it into your new pension you will get to keep your new companies contributions to your new pension even if you are there less than two years.

I've never heard of that rule - do you have some official back up for it?

ANXIOUS

sm3ar wrote: »

Basically does this mean they don't match my contribution in new company otherwise for 2 years?

No they will still Match it but generally if you left you'd only get the portion that you put in and the company would take back there portion back.

ANXIOUS

Ace2007 wrote: »

I've never heard of that rule - do you have some official back up for it?

2002 pensions act, change he'd vesting from 5 years to 2.

Talks about it at the bottom of this link

http://www.citizensinformation.ie/en/money_and_tax/personal_finance/pensions/occupational_pensions.html

Merowig

Depends if you plan to stay in the company for 2 years.
The advantage of not transferring is that you can access the pension pots at different times.
E.g. Pension Pot 1 is accessed at the age of 55, pension pot 2 is accessed at age 60, pension pot 3 is accessed at age 65.

I would compare as well the fund charges as part of the decision making process.

Ace2007

ANXIOUS wrote: »

2002 pensions act, change he'd vesting from 5 years to 2.

Talks about it at the bottom of this link

http://www.citizensinformation.ie/en/money_and_tax/personal_finance/pensions/occupational_pensions.html

That's not saying what the above poster is asking though

There is no circumstances where you can leave a colony's with less then 2 years service and get the Employer contributions back.

The post above implies that you can if you transfer in and this will then mean you have more than two years and hence can take the ER contributions even if you leave within 6 months which I've never heard nor seen. Hence asked for back up

Grassey

Ace2007 wrote: »

That's not saying what the above poster is asking though

There is no circumstances where you can leave a colony's with less then 2 years service and get the Employer contributions back.

The post above implies that you can if you transfer in and this will then mean you have more than two years and hence can take the ER contributions even if you leave within 6 months which I've never heard nor seen. Hence asked for back up

If you transfer from Pension 1 to Pension 2 it's not just the monetary amount that transfers, but also the service attaching to Pension 1 (assuming Pension 1 is not a PRSA).

So if you transferred from Pension 1 with 5 years service, into Pension 2, left pension 2 after 12 months, the service adds together to give you 6 years service.

As per the Pension Act quoted above you'd be able to transfer all the money now in Pension 2 (including ER contributions) to Pension 3. It would also preclude you from taking a refund of your contributions made in Pension 2 though.

Ace2007

Grassey wrote: »

If you transfer from Pension 1 to Pension 2 it's not just the monetary amount that transfers, but also the service attaching to Pension 1 (assuming Pension 1 is not a PRSA).

So if you transferred from Pension 1 with 5 years service, into Pension 2, left pension 2 after 12 months, the service adds together to give you 6 years service.

As per the Pension Act quoted above you'd be able to transfer all the money now in Pension 2 (including ER contributions) to Pension 3. It would also preclude you from taking a refund of your contributions made in Pension 2 though.

Never knew that, nor do I ever see that happening.

so if I have DC fund with Company A with 3 year service, leave, join Company B, in theory I could TV my fund to Company B (at any time) and then I'm automatically entitled to their ER contributions?

So if I was looking to move and had less than 2 years service, I could literally TV in, and then hand in notice leave, and TV out and get the ER contributions (which depending on salary, contribution rate, could be a lot? - and there is no catch?

obv there are costs to TV out etc, but other than that no catches?

Grassey

That's exactly how it works. I've seen it happen on a regular basis.

No catch, if the Trustees are willing to accept the transfer into the scheme then they are bound by the rules that service is cumulative over the entire fund, likewise so is the employee should they try to leave and get a refund less tax of EE contributions.

ANXIOUS

Ace2007 wrote: »

That's not saying what the above poster is asking though

There is no circumstances where you can leave a colony's with less then 2 years service and get the Employer contributions back.

The post above implies that you can if you transfer in and this will then mean you have more than two years and hence can take the ER contributions even if you leave within 6 months which I've never heard nor seen. Hence asked for back up

If you transfer in more than two years service it is cumulative. I've seen it approx 75,006 times.

ANXIOUS

Ace2007 wrote: »

Never knew that, nor do I ever see that happening.

so if I have DC fund with Company A with 3 year service, leave, join Company B, in theory I could TV my fund to Company B (at any time) and then I'm automatically entitled to their ER contributions?

So if I was looking to move and had less than 2 years service, I could literally TV in, and then hand in notice leave, and TV out and get the ER contributions (which depending on salary, contribution rate, could be a lot? - and there is no catch?

obv there are costs to TV out etc, but other than that no catches?

There are no costs to a transfer.