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PRSA and previous job

  • 10-11-2015 10:05pm
    #1
    dubdev
    Closed Accounts Posts: 167 ✭✭


    Hi there

    I've recently left a job where I had set up a PRSA and contributions were deducted from my salary. The employer didn't make a contribution themselves but they set up the deductions on the payroll system.

    I've decided since switching jobs that I'd like to pause my contributions for 6 months as I have an expensive few months coming up with Christmas and a few other things so I arranged that with my pension broker a couple of days ago.

    However , I got a phone call yesterday from my previous employer saying that a direct debit deduction had come out of a company bank account for my pension after I left and that they may need me to pay back the money . How this has happened I don't know as it was them who set up the payment and you'd think they would've stopped it as soon as I left.

    It sounds like they're chancing their arm here and being a bit shady , but then I'm no pension expert either. I did ask a trustee of my pension fund if I needed to do anything but he just said to tell my new employer the pension details if I want to continue with the pension, but nothing else here .

    Just wondering what my position here is, any advice appreciated , thanks !


Comments

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


    Your previous employer can contact the pension provider and request a refund of that contribution, it is a good practice to accommodate such request. If they confirm your date of leaving service to support their claim, it should not be problem.

    You have no obligation to pay to your PRSA, you can start contributions again when you can afford to do so.

    You can alsi discuss your options with your broker (preferably financial advisor) to see what solution is the most suitable one for your current situation

    Hope this helps


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