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Quitting job - do I lose my pension?

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  • 09-06-2014 1:25pm
    #1
    lukin
    Registered Users Posts: 4,037 ✭✭✭


    I handed in my notice to my current employer at the start of May. On my contract I have to give two months notice. That means I have to work up until the end of this month.
    I was intending to do that but something happened today that really annoyed me. My boss accused me of not doing something that I actually did. I am really annoyed and thinking of just walking (today). I can't stand him or the job anyway. I have a pension plan with the company; I read my contract and it says I am entitled to be paid what is currently accrued in the pension if I leave the job before 24 months.
    I have only been in the job 12 months so I am entitled to get it back. However if I leave today how does that affect it?
    It's not clear in the contract.


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    Technically yes you are entitled to it in any case, but by walking out during your notice period you are in breach of contract. A petty employer could use this to delay any payment of a pension fund, or even make a challenge to cancel it by reason of your breach of contract.

    You will also obviously lose any goodwill and future references if you walk.

    You have three weeks left, my advice would be to stick it out, come in, do the absolute minimum possible, and then you walk away with everything intact in 3 weeks time.


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    #3
    lukin
    Registered Users Posts: 4,037 ✭✭✭lukin


    seamus wrote: »
    You will also obviously lose any goodwill and future references if you walk.

    The company doesn't give references. The only thing is if in the future somewhere I apply for a job looks for some proof that I actually worked there (not the same thing as a reference).


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    #4
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    lukin wrote: »
    The company doesn't give references. The only thing is if in the future somewhere I apply for a job looks for some proof that I actually worked there (not the same thing as a reference).

    Just be aware OP that you got tax relief on your pension contributions, if you receive a refund on your contributions, more tax may be due on the income you received. Before requesting a refund, it might be worth getting advice from a pensions expert.


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    #5
    Teyla Emmagan
    Registered Users Posts: 5,641 ✭✭✭Teyla Emmagan


    They could sue you if you walk out. They probably won't but... It's a small country and these things can bite you in the a&&.

    You would be better off going home sick until you cool off.


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    #6
    leeroybrown
    Closed Accounts Posts: 7,563 ✭✭✭leeroybrown


    As davo10 says investigate your options a little more thoroughly. Depending on the policy, provider and fund involved your options may vary. And definitely get this sorted before you just quit as life will become a lot harder afterwards.


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    #7
    lukin
    Registered Users Posts: 4,037 ✭✭✭lukin


    davo10 wrote: »
    Just be aware OP that you got tax relief on your pension contributions, if you receive a refund on your contributions, more tax may be due on the income you received. Before requesting a refund, it might be worth getting advice from a pensions expert.

    I know that, it is in the contract; 20 percent of it is taken in tax if I quit or am fired before 12 months. Not serving my notice does not mean I will be taxed more.


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    #8
    lukin
    Registered Users Posts: 4,037 ✭✭✭lukin


    The pension I have accrued so far is a nice bit of money (2 grand) so I definitely want to get it. I will fire off an email to the pension company tonight. I don't have their contact details on me right now.
    I am fairly mad right now but I need that money so I don't want to just walk if it means I lose it.


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    #9
    Kristopherus
    Registered Users Posts: 11,907 ✭✭✭✭Kristopherus


    If you walk, you will be asking for trouble. As in, delay with final payment. Delay in issuing P45. Remember you will not be able to claim from Welfare for 9 weeks.


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    #10
    NewCorkLad
    Registered Users Posts: 957 ✭✭✭NewCorkLad


    You should get a full refund of your pension contributions when you leave your employment, do not confuse this with the current value of your fund if it has grown over the last 12months, those contributions will be taxed before you receive them. The company cannot affect this. However if the company has been contributing to the pension you will not be entitled to their contributions.

    I would try stick it out for the 3 weeks though as these things can come back and bite you in the ass. Why not sit there smiling for the 3 weeks and take their money in the knowledge its almost over,instead of sitting at home unpaid.


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    #11
    lukin
    Registered Users Posts: 4,037 ✭✭✭lukin


    Kristopherus wrote: »
    If you walk, you will be asking for trouble. As in, delay with final payment. Delay in issuing P45.
    Yeah, I have an interview on Wednesday so if I get the job I will need my P45 asap
    Kristopherus wrote: »
    Remember you will not be able to claim from Welfare for 9 weeks.
    I did a search on this forum for that; I think it is up to nine weeks.

    My boss is on holidays next week so I only have to put up with him for the rest of this week (apart from Wednesday) and the week after next week (which is my last week).


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    #12
    lukin
    Registered Users Posts: 4,037 ✭✭✭lukin


    NewCorkLad wrote: »
    You should get a full refund of your pension contributions when you leave your employment, do not confuse this with the current value of your fund if it has grown over the last 12months, those contributions will be taxed before you receive them. The company cannot affect this. However if the company has been contributing to the pension you will not be entitled to their contributions.

    OK so I only get refunded what has come out of my salary and gone into the pension? I know I don't get what the company has contributed.
    I must read that part in the contract again as can't tell from my payslips how much of what goes into the pension each month comes from my pay and how much comes from the company.


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    #13
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    OP, your tax relief on pension contributions is used against the income tax you pay on your gross income. If you get your pension contributions back then you may have underpaid the tax on your wages, you may have to make up the shortfall. Get advice before you request the refund, after you take the 20% hit, and potentially the tax shortfall, there might be a lot less left than you think.


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    #14
    blindsider
    Registered Users Posts: 2,022 ✭✭✭blindsider


    lukin wrote: »

    I am fairly mad right now

    Never do anything when you're mad - lots of deep breaths and get through the day.

    I did a search on this forum for that; I think it is up to nine weeks.

    Realistically, it'll be 9 weeks - they won't make it easy for you!


    My boss is on holidays next week so I only have to put up with him for the rest of this week (apart from Wednesday) and the week after next week (which is my last week).

    Not so bad then - hang in there - it'll be worth it.

    Hang in there!


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    #15
    lukin
    Registered Users Posts: 4,037 ✭✭✭lukin


    blindsider wrote: »
    Hang in there!

    Thanks. I have calmed down a little now but he had better not pull anything else before I leave.


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    #16
    nikinova
    Banned (with Prison Access) Posts: 90 ✭✭nikinova


    Look OP, I'm not sure if these words will help you just now but do this:

    1. clear your head
    2. Don't do anything hasty
    3. sleep on it.
    4. DON'T WALK OUT...HONESTLY TAKE IT FROM ME it is not worth it. I worked in a pretty big Television Corporation company - was subjected to a year of horrible bullying - one occassion it got so bad that I just walked out - and went home. I opened the door of my house - I was burgled - you couldn't make this up. the moral of my story was - the **** hit the fan at work - but there was more horrible things to deal with at home. So I impart this to you...

    Clear your head...don't leave your job for the sake of a wee prick annoying you - (sorry back language) there are worse things in life..

    Best of luck OP
    N


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    #17
    lukin
    Registered Users Posts: 4,037 ✭✭✭lukin


    nikinova wrote: »
    Look OP, I'm not sure if these words will help you just now but do this:

    1. clear your head
    2. Don't do anything hasty
    3. sleep on it.
    4. DON'T WALK OUT...HONESTLY TAKE IT FROM ME it is not worth it. I worked in a pretty big Television Corporation company - was subjected to a year of horrible bullying - one occassion it got so bad that I just walked out - and went home. I opened the door of my house - I was burgled - you couldn't make this up. the moral of my story was - the **** hit the fan at work - but there was more horrible things to deal with at home. So I impart this to you...

    Clear your head...don't leave your job for the sake of a wee prick annoying you - (sorry back language) there are worse things in life..

    Best of luck OP
    N

    That was a tough break, sorry to hear that. OK I will try and stick it out (purely for financial reasons).


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