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Leaving pension before two years

  • 09-09-2015 11:58am
    #1
    Kid Nothing
    Registered Users, Registered Users 2 Posts: 1,059 ✭✭✭


    I'm leaving my current job in the next few months and have only been apart of my companies pension plan for around 18 months. I relaise I will lose my companies contributions but I would like to continue paying into the scheme myself. Can I either withdraw my own contributions as a lump sum or transfer the holdings into a personal pension which I can then continue paying into personally?

    Thanks


Comments

  • #2
    mbradso2003
    Closed Accounts Posts: 261 ✭✭mbradso2003


    Generally you receive refund of contributions (value of gross contributions less 20% tax). Alternatively you can invest the same amount as one off AVC or split it over few regular months into your new occupational scheme (from your new salary) and claim 40% relief if you're a higher rate tax payer.

    Transfers to and from personal pensions can be difficult.

    One thing to note is the 2 years qualifying service includes any transferred in service in respect of a transfer value received. For example if you had 6 months pension somewhere else and transferred that into your job before you left, you would get current employers contributions as well.


  • #3
    mbradso2003
    Closed Accounts Posts: 261 ✭✭mbradso2003


    You can also only contribute to employer sponsored scheme while employee of that company.


  • #4
    Kid Nothing
    Registered Users, Registered Users 2 Posts: 1,059 ✭✭✭Kid Nothing


    mbradso2003 wrote: »
    Generally you receive refund of contributions (value of gross contributions less 20% tax).

    Thanks for the response. This is what I was hoping to do, receive a refund of my contributions entirely and pay the relevant tax. When I contacted the pension operator they didn't highlight this as an option. Should this be the case for all operators? I'll go back out to them and see what they have to say about it.

    Thanks again


  • #5
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,725 Mod ✭✭✭✭Henry Ford III


    Some ropey advise being bandied about here.

    Whilst automatic vested rights occur after 2 years scheme contributions the employer may at their discretion allow this earlier.

    As always options are:-

    1/. Leave accumulated fund where it is.
    2/. Transfer to a new employers scheme.
    3/. Transfer to a B.O.B.

    It's not that straightforward an area and I'd suggest you get proper advice OP.


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