Redundancy: Move old employer pension to PRSA?

B

Bluebird

Registered User
Messages
9
I recently took redundancy after working 10 years with a company and I'm wondering if I should move my employer pension plan into a PRSA or leave it where it is.

I already have a PRSA set up so I'm guessing it would be straight forward but I'm wondering if anyone could suggest any guidelines on how to decide if I should move my employer pension, and when.

Any info appreciated!
 
I don't think you can do so. Can't remember exactly but I think that the current value of the pension must be below a certain threshold or else it may be because it's more than two years old. Your options are to leave it where it is (and risk not keeping abreast of current value etc) or to move it to a retirement bond which is effectively the same except you are the sole person who will be informed of it's performance each year.
 
Really? That wasn't my understanding.

See this from itsyourmoney.ie:

Employer pension plan: If you were less than two years in your employer’s pension plan, you may be able to get back any contributions you made to the plan in cash, though you will have to pay income tax on it. You cannot take contributions made by your employer. If you have been in the pension plan for two years or more, you usually have to keep your pension benefits. Your options may then include:

  • keeping them in your old employer's plan until you retire;
  • transferring them to your new employer's pension plan;
  • transferring them to a PRSA ; or
  • moving them to a special pension policy called a Buy-Out Bond.
 
I may have been thinking along the lines of moving them to an exsting PRSA. My current company has me on a PRSA and I was not able to move the previous employer pension into it. Perhaps you may be able to put in into a PRSA as long as it's just being opened. There was definitely a limit on me transferring my old pension into my current PRSA.
 
A transfer into a PRSA is permitted as followes

The scheme rules allowes the transfer providing that the scheme is being wound up or the member is leaving service and pension fund has not been drawn down and the employee has no more than 15 years service or the value of the assets is no more than 10,000.

However in the event of the fund being in excess of 10,000 the member may apply for a "Certificate of Benefit Comparsion" which would compare the benefits of both DB/DC to a PRSA. Also if the transfer value is over 10,000 and is coming from a scheme that is being wound up
the PRSA may accept this providing that the Pension's Board has approved the transfer
 
You must log in or register to reply here.
Back
Top