Consolidating a number of Pensions

[angryInch]

Hi,
Looking for some help with a number of pensions that I have from different jobs. The pensions I have are:
Occupation Pension scheme from a job I left 2 years ago (was working there for 6 years). Pension has a transfer value of approx 20k.
Another occupational pension form a job I as only in for 18 months, worth approx 3k.
I am currently contracting and have set up a PRSA just 2 months ago into which I am transferring 1k per month.
The contract I am working on is only lasting for 10 more weeks after which I am going back to full time employment with a company offering its own pension scheme.

As I see it my potions are
(1) Transfer both previous company pensions into the PRSA.
(2) Transfer both previous company pensions to a Personal Retirement Bond.
(3) Wait until I start the new job and transfer the other pensions into the new company pension.
(4) Just leave them where they are.

I am getting very confused with all the options. I was going to transfer both pensions into a Retirement Bond, but at this stage I'm not even sure why that had seamed like the correct choice! Also if a retirement bond is a good option, which one would people recommend.

Really looking to get all these disparate pension looked at so that I know that my money is being put to best use.

Any help would be much appreciated...

 

[ClubMan]

When considering consolidation of two or more pensions make sure you understand the pros and cons - e.g. the possible impact on charges, fund selection, customer service, ease of administration. Whether or not it's a good idea to consolidate pensions depends on these and other factors. While having a single pension may mean easier tracking/admin it may not always be a good idea and in some cases retaining multiple pensions may make more sense or offer more benefits.

 

[Don_08]

If any of the pensions are DB you would be better off leaving where it is for the moment - that would give you a guaranteed pension at retirement, if the scheme is still in existance at that stage.

For DC schemes, you could tranfser them all into the PRSA - just to keep track of them - or leave them where they are.

 

[ClubMan]

If any of the pensions are DB you would be better off leaving where it is for the moment - that would give you a guaranteed pension at retirement, if the scheme is still in existance at that stage.

Fair point on the DB issue. My comments were predicated on DC only.

For DC schemes, you could tranfser them all into the PRSA - just to keep track of them - or leave them where they are.

Not necessarily. As far as I recall if your occupational fund(s) is(are) worth over a certain amount then, in practice, you cannot move them to a PRSA. In theory you can but nobody is providing the actuarial report (?) that is needed. My memory is hazy on the details but that's the general gist as far a I recall.

Also - as I mentioned above one should only consolidate pensions having first understood the pros and cons of doing so and only if there are tangible benefits arising from doing so.

 

[LDFerguson]

Clubman's correct - transferring a fund of >€10,000 from an Occupational Pension Scheme into a PRSA requires a Certificate of Benefits Comparison unless the original scheme has been wound up or the transfer represents a refund of employee contributions. The certificate costs around €3,500, last time I checked, so this is only a viable option for large funds.

 

[ClubMan]

OK - so one can get the Certificate of Benefits Comparison but at a price. I thought that nobody was actually issuing these at all in practice. At €3.5K a go maybe that is the de facto situation!