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Pension Query

  • 28-10-2015 5:12pm
    #1
    Cool Rider
    Registered Users Posts: 78 ✭✭


    Hi,

    I am 33 years old, working in a Semi-state company A for 7 years which was privatised recently. I will change jobs next month.
    Company A operates Defined benefit(DB) pension scheme, the fund is solvent as well.
    In the new Company B there is no pension scheme so I will be taking up a private pension scheme with Irish Life plc.

    The money going in pension account with Company A is on averarge 10-12 K every year between mine and company's contribution. I am trying to get a € value in my fund but I am being told that this will take 2 months to work out.

    Would it make sense for me to move my pension fund from Company A to new fund in Irish Life or I will be mad to take money out from a DB scheme.
    At present it shows that on retirement I will get gratuity of 14.4K and a pension of € 2,670 p.a. roughly € 220.

    Personally I see pro in having all eggs in one basket and easy to move it along as I change jobs rather than having to keep track of different pension schemes.
    Thanks for your time,
    Andy


Comments

  • #2
    coylemj
    Registered Users, Registered Users 2 Posts: 25,476 ✭✭✭✭coylemj


    Cool Rider wrote: »
    Would it make sense for me to move my pension fund from Company A to new fund in Irish Life

    No
    Cool Rider wrote: »
    ... or I will be mad to take money out from a DB scheme.

    Yes.

    No matter what they offer you as a transfer to the DC scheme, it will be nowhere near what would be needed to buy (via an annuity) the benefits that you will forego by exiting from the DB scheme.


  • #3
    Hani Kosti
    Registered Users, Registered Users 2 Posts: 270 ✭✭Hani Kosti


    While the scheme is solvent (fully funded), it would not be beneficial to you to transfer out as you couls be losing money.
    Yes it can take up to two month to determine the current value of your "pot" as the actuary need to run a valuation of all scheme assets, liabilities etc.
    So no, I wouldn't transfer your DB pension at this stage


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