Where exactly do our pensions contributions go?

highly1111

Hi

I'm a post primary teacher on a fixed term contract covering for career break.

I know that we all pay a (in my opinion) disproportionate amount of our salaries into our pensions - and there's not a lot we can do about that unfortunately.

However, I worked in the private sector for years and I have about €10k in a pension plan which is being managed by IFG Corporate Pensions. I am unable to cash it in as I was in my last company for more than 2 years and I have a few choices. I can leave it where it is where it will just stay invested. Or I can transfer it to the Department of Education & Skills pension plan.

At the moment the pension is currently split between Irish Life Investment Managers and Bank of Ireland Asset Management and is split between Bonds, Cash, international equities, Irish equities and a very small amount in property. I have percentage breakdowns etc.

However, despite trying my best to find information online, (and after a particularly disastrious phone call with the pensions department in athlone) I have no idea where my teaching pension is actually invested.

I am totally confused as to weather or not transfer my pension and I won't be able to make a decision until I know who the Pension fund manager is? Who do the Department employ to manage our pension funds?

The lack of transparency is mind-boggling. Roughly 10% of my gross pay goes into a "pension plan" but I have no idea where the money is *actually* going. Who manages the department of education and skills pension fund?

Can anyone help?

Thanks

Highly

TheDriver

I asked this years ago regarding leaving s&S scheme and the pension contributions are gone, which apparently is against pension rules.
So the pensions board got contacted and guess what? We don't make pension contributions! We subscribe to a pension scheme which is totally different to private industry

highly1111

See this is where I'm really confused. I would have thought that maybe our pension contributions are managed by the national pension reserve fund under the national management treasury agency. However if the pension contributions are not in fact being invested - but are actually either a) just being treated as taxation or b) are going straight out as pension payments to retired teachers?? If there is no actual investment - and therefore - No potential growth - then there is absolutely zero benefit to me transferring over my private pension to the department. Over the next 30 years my ten grand might grow to 20 in a pension fund (optimistic!) if I keep it with fund managers - but if I transfer it - am I simply giving it to enda and co??

There are so many issues here i could go off on a complete tangant - but at the end of the day - I don't want to transfer my 10k into a black hole - i'm already doing that with 10% of my gross pay..... (meaning it's not being invested anywhere.....)

rainbowtrout

highly1111 wrote: »

See this is where I'm really confused. I would have thought that maybe our pension contributions are managed by the national pension reserve fund under the national management treasury agency. However if the pension contributions are not in fact being invested - but are actually either a) just being treated as taxation or b) are going straight out as pension payments to retired teachers?? If there is no actual investment - and therefore - No potential growth - then there is absolutely zero benefit to me transferring over my private pension to the department. Over the next 30 years my ten grand might grow to 20 in a pension fund (optimistic!) if I keep it with fund managers - but if I transfer it - am I simply giving it to enda and co??

There are so many issues here i could go off on a complete tangant - but at the end of the day - I don't want to transfer my 10k into a black hole - i'm already doing that with 10% of my gross pay..... (meaning it's not being invested anywhere.....)

Why would you be transferring it in unless you are buying back years? I don't understand your query at all. PS pensions are defined benefit, it doesn't matter where the money goes because you get a set amount at the end of your career. 1/80 of final salary x years worked as pension and lump sum is 3/80 of final salary x years worked. This is how your pension is calculated regardless of where the money is invested.

highly1111

Thank you Rainbowtrout. You've answered my question perfectly! Really appreciate it. ;-)

I won't be transferring in anything in now. Doesn't make any sense. Again, thanks.