Transfer to HSE pension

ali1971

Hi All,

Our employer was recently taken over by the HSE so I have a HSE pension now.

I had a private pension with one of the banks since 2004 and the employer and I were paying into it.

I can leave it there in the bank or put it into a personal retirement bond. I was thinking of moving it to the HSE pension. I would be worried it wouldn't grow any further with the bank and there would be yearly charges as well. Also a colleague said once you've used it up, it is gone. Would it be more safe/secure with the HSE?

I am 52 and just work a 30 hour week so I have some more years to work.

Thanks in advance for any advice.

Henry Ford III

Get proper advice. Be prepared to pay for it too.

masterboy123

https://www.boards.ie/discussion/2058289059/transfer-to-hse-pension

What's your area of expertise?

Geuze

https://www.boards.ie/discussion/2058289059/transfer-to-hse-pension

HSE and all public service pensions are unfunded DB pensions. There is no pension fund.

So there is nowhere to transfer a funded DC to.

Jim_Hodge

Go and get professional advice.

AndrewJRenko

https://www.boards.ie/discussion/comment/120385587#Comment_120385587

The OP may be thinking about using their bank pension fund to either buy additional years service in their HSE pension, or put it into AVCs arranged through the HSE, to maximise tax benefits. As you correctly point out, there is no HSE pension fund, so AVCs would be going back into a fund managed by a private provider.

@ali1971 , can you clarify if you're looking at one or other of these options?

Henry Ford III

https://www.boards.ie/discussion/comment/120385937#Comment_120385937

You can't use a pension transfer value to buy new AVC's.

AndrewJRenko

https://www.boards.ie/discussion/comment/120387197#Comment_120387197

They could be planning to cash out of their bank pension, which may be allowed after age 50, depending on the scheme, and use those funds to buy AVCs.

More like recycling of funds than transferring.

Henry Ford III

https://www.boards.ie/discussion/comment/120387461#Comment_120387461

I fail to see how that could make any sense.

AndrewJRenko

https://www.boards.ie/discussion/comment/120389830#Comment_120389830

If they can access their bank pension from age 50, they could retire from that employment now, get a lump sum and a regular income.

They could use those funds to make AVCs, either one-off AVC amounts or regular contributions, or a combination of both.

They would gain from tax relief and future investment growth on the AVCs, though they would lose out on possible future growth in the bank pension fund.

AnRothar

Just wondering and perhaps the OP can clarify something.

Their employer has been taken over by the HSE.

So what was the situation regarding pension provision before this?

What if any undertakings have been given regarding previous "pensionable employment"?

ali1971

Thank you all for your comments and advice. I'm a 51 year old nurse so don't know a huge amount about pensions. I was in a private pension up to last month with the employer paying a percentage with me paying a percentage too. Retirement age on it was 65 but I think you can access it earlier as a colleague retired at 62. I am now paying into the HSE pension but probably won't have many years in the HSE.

I thought I would be able to transfer the whole private pension across to the HSE pension pot but it looks like it's not possible.

I will get some professional financial advice what to do too.

Thanks again

Geuze

Personally, I would not pay for advice.

There are enough knowledgeable people on here and on AAM to help you.

I hate seeing people of modest means like myself or a nurse paying hundreds to acquire information that is easily got elsewhere.

Geuze

Here is my first comment.

Establish exactly what type of pension who have with the previous employer.

DB or DC?

Funded or unfunded?

AnRothar

I was in a private pension up to last month with the employer paying a percentage with me paying a percentage too. 

Based on this I suspect it was DC but the OP will need to read their pension documents to be sure.

Hybrid DB/DC do exist.

The OP may need some hand holding and probing questions to get help relevant to their circumstances.

There are many knowledgeable posters here and in ask about money but information is key.

General info is readily available on both.

ali1971

Hi,

Thanks for your replies. Just checking the statement and it's a DC pension. I think funded. Over the years I paid a percentage and the employer paid a percentage.

Henry Ford III

https://www.boards.ie/discussion/comment/120400089#Comment_120400089

An unfunded DC scheme is a paradox.

ali1971

Thank you all kindly for your help and advice.

AnRothar

To the Op you have a DC pension which has an accumulated value.

It will also have a potential future growth value based on years left to grow.

I am 52

You are now joining the HSE pension which I understand is based on a career average.

Its future value will be based on salary and length of service.

Do you envision yourself still working as a nurse until you are 65/67?

its growth potential is limited by the potential time available.

Do your old (TUPED) contractual retirement age (if any) and "new" HSE one align?

This is where you now need to look at more personal advice.

ali1971

Thank you An Rothar