Pension Contributions on Leaving Company

Discussion in 'Pensions' started by abbey, Oct 11, 2006.

  1. abbey

    abbey Frequent Poster

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    31
    Hallo all,

    I am being made redundant (well my job is) and I'm with the company less than 2 years.
    Does this mean that I can't keep the Employer Pension Contributions?

    I vaguely remember reading something about a vesting period and if you leave the company before this period, you lose all your e'er contributions.
    Does anyone know if this is true?
     
  2. ClubMan

    ClubMan Frequent Poster

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    43,689
    Check the rules of the scheme. Many occupational schemes have a vesting period of 2 years or so and if you leave before that time is up then you lose the value of employer contributions. Note that having transferred in the value of a previous occupational fund also transfers in vesting time from that fund if applicable. However there may be an exception to the vesting period rule and loss of employer contributions for being made redundant as opposed to leaving for any other reason.

    Check with the Pensions Board or DETE Employment Rights Section.
     
  3. Guest126

    Guest126 Guest

    Would EXPECT that you can keep employer contributions because you were made redundant...however IF you take a refund (i.e. do not keep your money as 'pension' money then you can only get back your own contributions less tax).
     
  4. CCOVICH

    CCOVICH Frequent Poster

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    8,864
    And tax is at the standard rate, even though yo may have received relief at the higher rate of tax.
     
  5. abbey

    abbey Frequent Poster

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    31
    Hallo All,

    Thanks for the replies. I checked the scheme rules and as I feared there is a 2 year rule. The amount involved isn't huge but to me with not very much money, it is huge. I really feel hard done by. I earned that money and cos of that stupid rule, I don't get to keep what's mine. It's not fair...
     
  6. ClubMan

    ClubMan Frequent Poster

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    43,689
    Even if you choose not to take a refund and instead leave it in the fund (if it's not being wound up), transfer to another occupational scheme, transfer to a buy out bond or transfer to a PRSA if applicable?
     
  7. abbey

    abbey Frequent Poster

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    31
    ok..Thanks for the advise.
     
  8. Guest126

    Guest126 Guest

    Abbey - that was a question...and it it one which you could COPY and PASTE and send to the administrator/contact for your pension plan, it would seem unfair to me if you were to lose company contribution (unless you took a refund in which case it is normal that you lose it).
     
  9. mmclo

    mmclo Frequent Poster

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    264
    NEGOTIATE...there is usually discretion allowed.
     
  10. abbey

    abbey Frequent Poster

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    31
    Hallo,

    Yes, you might be right as the pension company emailed me and basically said that it was up to the trustees whether I get to keep the all the cont.s or not...

    Thanks for the advise,
    Abbey