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Leaving job and pension

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  • 04-12-2014 11:42pm
    #1
    done4now
    Registered Users Posts: 106 ✭✭


    My employer has paid €5,000 into my pension and I have been thinking about moving job. I read online recently that I would lose my employer contributions if I leave my before 2 year mark. I have emailed the investment fund about it to try and find out more.

    But I was wondering is there anyway to keep my employer contributions if I leave before completing 2 years?

    Or am I better just sticking it out for 9 months to keep the money?


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    #2
    MBags
    Registered Users Posts: 7 ✭MBags


    Is it possible to leave the pension where it is and enrol in a new one, with your new employer (assuming there is one). Then after the accumulated two year mark, is it possible to transfer to the new pension including the previous employer contributions?


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    #3
    SBarrett
    Registered Users Posts: 160 ✭✭SBarrett


    MBags wrote: »
    Is it possible to leave the pension where it is and enrol in a new one, with your new employer (assuming there is one). Then after the accumulated two year mark, is it possible to transfer to the new pension including the previous employer contributions?

    I doesn't work that way. You need 2 years pensionable employment.

    The trustees can waive the 2 year vesting period and let you have the value of the fund without you having completed the 2 years.

    The insurance company probably won't provide you with any information. The policy is set up under trust and they provide information to the trustees.


    Steven


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    #4
    MBags
    Registered Users Posts: 7 ✭MBags


    SBarrett wrote: »
    I doesn't work that way. You need 2 years pensionable employment.

    The trustees can waive the 2 year vesting period and let you have the value of the fund without you having completed the 2 years.

    The insurance company probably won't provide you with any information. The policy is set up under trust and they provide information to the trustees.


    Steven

    Does the 2 years not accumulate across jobs?


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    #5
    SBarrett
    Registered Users Posts: 160 ✭✭SBarrett


    MBags wrote: »
    Does the 2 years not accumulate across jobs?

    If you have 2 years and move jobs, if you transfer your benefits into the new scheme, you get immediate vesting of the benefits under the new jobs pension scheme.

    You have to move the benefits and if he has less than 2 years, he doesn't satisfy the vesting period for job 1.


    Steven


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    #6
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    Hey Steven, are you the 'S Barrett' Mary-Lou included in the list of (alleged) Ansbacher account holders she read out in the Dail the other day? ;)


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    #7
    MBags
    Registered Users Posts: 7 ✭MBags


    SBarrett wrote: »
    If you have 2 years and move jobs, if you transfer your benefits into the new scheme, you get immediate vesting of the benefits under the new jobs pension scheme.

    You have to move the benefits and if he has less than 2 years, he doesn't satisfy the vesting period for job 1.


    Steven

    Can you not leave the original pension for 2 years before moving? I don't think you have to move your pension when move jobs.


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    #8
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    MBags wrote: »
    Can you not leave the original pension for 2 years before moving? I don't think you have to move your pension when move jobs.

    You don't 'have to' move the pension but the point is that the employer is legally able to claw back his contributions if you leave before two years service and in almost all cases they do so. No reason not to when you think about it.


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    #9
    SBarrett
    Registered Users Posts: 160 ✭✭SBarrett


    MBags wrote: »
    Can you not leave the original pension for 2 years before moving? I don't think you have to move your pension when move jobs.

    You can leave it there all the way up to retirement if you want. Your years of pensionable service will not change. It is actual years of membership in a pension scheme.

    If you want to use the years service already accumulated in a new scheme, you have to transfer the benefits across.

    Steven


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    #10
    done4now
    Registered Users Posts: 106 ✭✭done4now


    I know I can leave my pension at any point and keep my own contributions but if I want to also keep my employers contributions do I have to stay 2 years? Is there any other way I can keep it?

    Is there any way for me to find out at what date I can keep my employers contributions?

    Would I be stupid leaving it early and losing €5,000?


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    #11
    SBarrett
    Registered Users Posts: 160 ✭✭SBarrett


    You must have 2 years pensionable service. Ask for the benefit statement and it will have your start date.


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    #12
    Ace2007
    Registered Users Posts: 19,705 ✭✭✭✭Ace2007


    done4now wrote: »
    My employer has paid €5,000 into my pension and I have been thinking about moving job. I read online recently that I would lose my employer contributions if I leave my before 2 year mark. I have emailed the investment fund about it to try and find out more.

    But I was wondering is there anyway to keep my employer contributions if I leave before completing 2 years?

    Or am I better just sticking it out for 9 months to keep the money?

    that's quite a nice ER % if they have put 5k in, in the last 15 months.


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    #13
    done4now
    Registered Users Posts: 106 ✭✭done4now


    Ace2007 wrote: »
    that's quite a nice ER % if they have put 5k in, in the last 15 months.

    They pay in 6% regardless and then if I pay in they match that of top of what they already pay in.

    I know I can keep my own contributions but the employers is the problem atm.


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    #14
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    why would they let you keep their contributions if you leave before 2 years. They are not obliged to and as your leaving why would they extend an employment perk to somebody whos leaving ?

    If you want to keep the contributions then its likely you will have to stay for 2 years. The trustees of the fund could potentially waive the right but its unlikely as there is absolutely no sense in them doing so.

    As for should you stay or go that's ultimately up to you. Moving job should be more than just a monetary decision but each to their own.


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    #15
    SBarrett
    Registered Users Posts: 160 ✭✭SBarrett


    done4now wrote: »
    I know I can keep my own contributions but the employers is the problem atm.

    If keeping your employers contribution is important, your choices are:

    1. Stay until you have the 2 years pensionable service and you are entitled to them under law.
    2. Ask if the vesting period will be waived and they will let you have the value of their contributions.


    There are no other choices.


    Steven


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