Moving job & continuing to contribute to same pension

TK Lemon

Mr. Lemon is under a lot of stress in work lately and for his mental and physical health he's considering a sabbatical or career break for a year or two and moving to a slower paced job closer to home. His workplace doesn't allow extended leave and return.

He was looking at a place closer to home that only allows staff to join the work place pension after two years' permanent service.

If I'm not mistaken, all employers must facilitate pension deductions regardless of tenure in the company (they don't have to contribute themselves but they do have to facilitate employee contributions).

If Lemon moves to that company can he just keep his current pension account (Willis Towers Watson) and start making contributions into it from his new work?

antix80

If it's a company pension, no, he can't continue contributing to it. When he leaves he will get leaving service options - either leave his money in that pension, or transfer it to a new pension. There are complex rules surrounding transferring pensions depending on the type of pension account it's coming from and going to.

He can set up a prsa for his new job. The employer must facilitate payroll deduction but does not have to contribute.

TK Lemon

It's a defined contribution pension. If he transferred it, would he lose a chunk of it?

antix80

TK Lemon wrote: »

It's a defined contribution pension. If he transferred it, would he lose a chunk of it?

Probably not.

Google transfer defined contribution to prsa.. Good pdf there from irish life.

TK Lemon

He read his work contract. If you leave before 2 years' service you'll lose your employer contributions.

He's there more than that so he'll keep those contributions (10%).