Employer Contributions into non-existent Pension

[pepperds]

Hi....

for the past 3 years approximately I have been making contributions from my gross salary intended to be put into a pension. Unfortunately, the company I work for have been VERY slow in setting the pensions up, we are now at a stage where we will be starting a PRSA from september onwards.

My question is as follows, I have made approx €10k worth of contributions, which in effect has simply sat in my company's bank account for the past 3 years. They have told me that obviously this amount will be put into the new PRSA as a lump sum. Is there anything stopping me requesting that all or indeed a part of the 10k can be given to me directly now (obviously taking tax into account)???? as a bonus. I would pay the relative income tax/prsi as would the company?

Many thanks in advance for any help on this matter

Cheers
dave

 

[gerry]

This sounds like a fraud to me. Are they paying your PRSI ? You could report them to the Pensions Board. Are you sure that the money has being sitting in the company account and not being used by the company ?

 

[Guest]

Emploer Contributions into non-existent Pension

Yeah - sounds dodgy to me. Note that having the money sitting in an account rather than invested immediately in your pension could mean that your ability to claim full tax and PRSI/health levy relief up to the normal age related limits is jeopardised. You are also missing out on the opportunity for your contributions to grow while it is sitting on deposit (possible losing real value if inflation outstrips the net deposit returns) rather than being invested.