If I leave Occupational Pension - How much

P

POAP

Guest
I recently started paying into an occupational pension scheme and under the rules that were given to me it states that if I leave my employer before 2 years service I can transfer the value of my contributions to another scheme.

Does this mean if I have paid in 2000 euro that I will be able to transfer 2000 or will it be a "surrender" value which in my experience would be a good deal less ?

After the two years the employers contributions are also supposed to be transferable does the same apply to them ?
 
POAP,
If you leave your employer with less than 2 years service you will get back what YOU have paid in less 23% tax
So 2000K will give you 1540

If you transferred to another pensions scheme(new employers or PRSA) then you would be able to transfer 2000K+what the employer had paid in.

After 2 years service the option to encash the fund is gone.
The other options available are the same.
(ie transfer to buy out bond,transfer to PRSA,new employers scheme,leave fund where it is)
S
 
Hi Savy - Won't it depend on the investment performance during the >2 year period also? So if the investment funds have gone down, he will also be down some money. If the recovery of recent months has come through to his funds, he might have recovered or even made some investment gains too.
 
Occupational Pension

I recently enquired about transfering the fund from a personal pension plan to a PRSA and whilst the fund was worth 5700. I was told I could only transfer the "surrender value" which they magically calculated at 3200 euro.

I do not want this to happen with the occupation pension - In other words If I pay in 5000 euro over the next two years and change job I do not want to be told I can only transfer a "surrender value" of 2500 euro to a new pension. Are occupational pensions different in this respect ?
 
Re: Occupational Pension

I seem to recall that the "surrender value" issue arose because your pension was invested in a WP fund and this "shortfall" arose from the imposition of an MVA which is common with early encashments/transfers out of WP funds. Am I mistaken? If this is the case then the differential between the surrender/transfer value and the normal valuation should not arise in a non WP investment assuming that there are no "initial units" (charges by the back door) or other surrender/transfer charges levied. Hope this helps.
 
Rainday,
Thank you for correcting me.

You will be entitled to the value of the investments based on your contributions(less 23% tax)

S
 
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