Leaving company pension plan less than 2 years served

I'm looking to move on from my current job after I've completed a year there. I'm a bit confused as if I can keep my employers contributions or not as my pension providers (Mercer) website it sounds like I can if I transfer to another scheme and don't take the refund.

On leaving service you are entitled to a statement of options regarding what you can and cannot do with your accumulated pension. You will receive this statement from the administrators of your pension scheme but it may be up to 6 months after you leave service.

Less than 2 years of pensionable service
If you have less than two years of service, you should have the following options:

• Refund of your own contributions (though not your employer’s), which are taxable or
• Transfer of your own contributions to:

1. A new employer’s Occupational Pension Scheme
2. A Personal Retirement Bond

You may have the following option, depending on your scheme’s rules:

• Deferred benefit. If your scheme rules allow, you may be able to retain a deferred benefit, comprising the full entitlements arising from your own and your employer’s contributions for your period of service.

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My employers wording on it

Benefits on Leaving the Company Prior to Retirement

You will be entitled to a transfer value or a deferred benefit, provided you have 2 or more years of qualifying service with the Company. Qualifying service means service completed as a member of a X pension plan or in another plan from which a transfer value has been paid into the Plan.

If you do not have 2 years qualifying service, you will have the option to receive a refund of the value of your AVCs (less tax) or to transfer the AVC value to any new employer’s pension plan, an approved Buy Out Bond or a Personal Retirement Savings Account (subject to certain restrictions).

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it seems I can only keep my AVC's.

My company is paying in 10% so I'd like to keep that. I had a 5 years service in my last job but I didn't transfer it I just left it in my old pension so I cannot have that service count towards two years like I read on this forum (Topic is called 'Leaving Company, less than 2 years service. - Refund of member contributions '- cannot link as I'm getting my message contains spam)

So I am wondering what are my options are if I move job or just take a break from working after Covid is all done? Can I keep my companies contributions if I'm not working and just set up my own private pension or could I transfer them into my old employers pension scheme?

Can you not just transfer your funds from previous job into your current one before you leave? That way you would keep your current employers contributions.

That's definitely the trick, if the option is available.

I really hate that employers have this ability to clawback pension contributions, it goes against the spirit of making pension contributions for employees, IMHO.

MrEarl said:

That's definitely the trick, if the option is available.

I really hate that employers have this ability to clawback pension contributions, it goes against the spirit of making pension contributions for employees, IMHO.

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True, but that's what is in the legislation. Companies aren't going to give over money to leaving employees unless required. Perhaps there should be calls for it to be changed but I've the feeling not enough people care.

fungie20 said:

Can you not just transfer your funds from previous job into your current one before you leave? That way you would keep your current employers contributions.

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Does it have to be 2 consecutive years of service though? I wasn't working for a year (went travelling + looking for a job during the pandemic) between these two jobs.

Can a pension be transferred at any time? I thought it could only be done within X number of months after leaving a job.

It's 2 years in total of contributions, could be from 10 jobs once they are consolidated. Can be transferred in at any time, I waited 3 years to transfer one in.

If you transfer your benefits from another employment into this scheme, your time served transfers too and you will have had 2 years pensionable employment and can keep the value of the current employer's pension contributions. Otherwise, you are only entitled to the value of your own contributions.


Steven
www.bluewaterfp.ie