Advice on leaving Pension in Ireland

[casiopea]

Hi folks,

I was hoping that I could get some advice or feedback from some of you on this.

Background, 7 years ago I moved to Switzerland continueing to work for the Irish founded company I was with in Ireland. When I moved to CH, I was paid in Swiss Francs, I paid Swiss taxes and set up a separate Swiss pension fund (had to do this by law here). I requested my company to leave my Irish pension intact and not to move etc. at the time I thought Id be returning to Ireland a year or so later.

So I now have 2 pensions a swiss and irish one with the same company.

Last year this irish company was bought and swallowed up by a much larger american company. Over the course of the year I have quit that job and joined a local Swiss company. As I switched job I went to move both pensions to my new swiss employer. So that I would only have one pension fund.

I found out that I really could only move the swiss one. That moving a foreign (even EU based) pension into switzerland is difficult and costly.

The relationship my previous company had with the pension people in Ireland is now terminated (as the company is gone). I have had some confusing communication with the Irish pension company. In short they keep at me to move this pension to my new employer. Ive explained that it is seemingly impossible and that Ive been recommended by my Swiss Employer (who specializes in insurance and pensions) not to do it. Ive asked the pension company in Ireland what my options are and if I could speak to an advisor.
I specifically asked them, what steps I need to take to "freeze" or keep my pension in Ireland. What hidden costs I may incurr on accessing the pension from abroad at retirement age (capital gains tax?/charges that my previous employer would have paid them that I may need to now?) and if they need to issue a new contract to me nwo that the employer with whom they had the relationship with is gone.

They wrote me a mail saying:

"If you decide to go for paid up pension your fund will remain invested until you reach normal retirement age.

I am not aware of any implications yet but if anything changes we will issue communication to all active and deferred members.

Can you please give me your current home address in case we have to contact you."


So it seems I just do this (send my details) and forget about it....but Im very uncomfortable doing this (alarm bells are ringing). This pension fund covers 14 years of my working life in Ireland. Can anyone advise what I should or should not do?
Thanks
cas.

 

[GSheehy]

When you left the service of the original Irish employer, were you given 'leaving service option papers' ie a list of what you could do with your accumulated Irish fund?

That company is now 'gone': was the original pension scheme 'wound-up'? The mail reply from the pension company is a tad confusing.

Can the pension company here in Ireland offer you on-line access to your pension account?

Have the pension company (or the trustees of the original scheme) informed you that you can transfer the fund into your own name?

Do you know what the ongoing annual charges are on the fund in question and what it is invested in?


GS

 

[casiopea]

Hello GSheehy,
Thank you for taking the time to reply.
Answers inline.

When you left the service of the original Irish employer, were you given 'leaving service option papers' ie a list of what you could do with your accumulated Irish fund? That company is now 'gone': was the original pension scheme 'wound-up'? The mail reply from the pension company is a tad confusing.

I was sent an leaving service option papers and asked to provide details of the new scheme where the money should be sent. At the time this was exactly what I wanted but it was only after investigating it that I realized that transferring this money to Switzerland and my pension scheme here is not an option. I was given no other option. Other employees have their schemes merged to the new company pension scheme. I have complicated things in that I now live abroard. Yup the mail from the pension company was very vague and worrying I felt. Prior to this I had always dealt with my companys HR department now that htey are gone I need to deal with these people and htat is hte level of information Im getting from them.

Can the pension company here in Ireland offer you on-line access to your pension account?

No they dont provide this service.

Have the pension company (or the trustees of the original scheme) informed you that you can transfer the fund into your own name?

No, nothing like that, is this something I can do/should consider perhaps? Im happy leaving the money in Ireland I just want to do so in the most efficient manner.

Do you know what the ongoing annual charges are on the fund in question and what it is invested in?

No, I specifically asked the former question and the reply mail you saw about. I havent asked the second question but its a good one. Will do so.

Thank you.

 

[GSheehy]

I can't think of any reason why you were not offered the full range of 'leaving service' options on the original scheme, when you went to Switzerland.

You should have been offered the option to transfer to a Pension Retirement Bond (or a PRSA - subject to certain criteria) along with the option to transfer to a 'new' occupational pension scheme (which was a non-runner in your circumstances).

GS