W200
Yes but subject to a 20% tax deduction. After two years you must opt for a deferred benefit.
W200
Yes but subject to a 20% tax deduction. After two years you must opt for a deferred benefit.
Thats exactly what this means, only if, you have less than 2 years pensionable service.Does this mean you could get 40% relief on the way in, and 20% on the way out?
A scheme is not obliged to have a vesting period at all.Thats exactly what this means, only if, you have less than 2 years pensionable service.
I understand this is frequently used a lot by employees who are here for a specific period or project length, they can load up their pension contributions- get 40 % tax relief on their contributions, and take the proceeds, less 20 % on departure. A downside to this is, if you don’t have 2 years pensionable service, you loose all of the employer contributions. This is returned to the employer by the pensions company.
Generally speaking, its more effective for most people, to transfer the total, into your next employment pension fund, a PRSA, or a Personal Retirement Bond
That sounds unusual. There's legislation that means you must receive a leaving options statement within 2 months of leaving your pensionable job.But this only happens when the ex employee, arranges a transfer, which is after the employment ceases, and can be years later.
fayf, I read the above to mean that the 'clawback' only happens when the ex employee moves their part of the funds?and claw back the employers contributions. But this only happens when the ex employee, arranges a transfer, which is after the employment ceases, and can be years later.
All good, we are all exploring here.fayf, I read the above to mean that the 'clawback' only happens when the ex employee moves their part of the funds?
In my experience, as an accountant for large companies, the refund is made as part of the same process as issuing the leaving options letter, not when the funds are moved. But maybe there's something unique about those 3 pension managers I've worked with? Or maybe I've completely misread your post in which case I apologise.
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