Employer Pension Contribution - 2 year limit?

Sycamore Tree

Hi,

I am in an employer for 1.5 years. I am told that if I leave before 2 years I will lose all my employer contributions.

Is this a legal thing or does this vary by employer/plan?

Liam D Ferguson

The employer & pension scheme trustee can choose anything from zero to two years when they're setting up the pension scheme. Legally it can be anything up to two years but not more than two years. I've only anecdotal evidence but in my experience most employers go with the two years.

If your employer gets a refund of the value of their contributions, you get a refund of the value of your contributions, less 20% tax.

ANXIOUS

Liam D Ferguson wrote: »

The employer & pension scheme trustee can choose anything from zero to two years when they're setting up the pension scheme. Legally it can be anything up to two years but not more than two years. I've only anecdotal evidence but in my experience most employers go with the two years.

If your employer gets a refund of the value of their contributions, you get a refund of the value of your contributions, less 20% tax.

You also have the option to transfer your benefits, even if the employer gets a refund.

The J Stands for Jay

ANXIOUS wrote: »

You also have the option to transfer your benefits, even if the employer gets a refund.

You can only transfer the portion that came from your contributions (if you leave within 2 years).

bridster007

I think this is just a rule that just exists in many schemes by default.
Often employers don't even know about it and don't even get the refund back themselves.
Our pension administrator was pissed off that I followed up to receive the employer related refund for every leaver, no matter how small it was.

jonnybravo

My last company was 2 years from when you joined the pension scheme (eligible to join after 6 month probation).