Pension Losing Employer Contribution

[Rackstar]

Just wondering if anybody can answer this. I was just reading the small print of my pension and it says that if I leave the pension scheme without completing 2 years I would not be entitled to the employer contribution.

Just wondering is this a stipulation by the pension plan provider or the employer?

My situation is that I have been working for a branch of the main company and now the branch I work in has now set up as a separate company (I did not have any part in this and it was done by the management). I now work for the new company and this company is starting up a new pension plan.

Will I lose the employer contribution when my pension from the original company is transferred into the new pension plan?

 

[LDFerguson]

Just wondering is this a stipulation by the pension plan provider or the employer?

It's a decision made when the pension scheme is being set up, typically by the employer. The law allows for refunds of employer contribution if an employee leaves within the first two years but a scheme is free to reduce or eliminate this two year period if they want.

Will I lose the employer contribution when my pension from the original company is transferred into the new pension plan?

Assuming you were more than two years in the previous pension scheme, if/when you transfer your previous fund into the new scheme, your service in the previous scheme is added to your service in the new and so the two year period no longer applies to you.

Liam D. Ferguson

 

[boaber]

From Section 13.10 of the Revenue's Pension Manual:

Company Re-organisations
13.10
Where there is a change of employer following on from mergers, liquidations, management buy-outs etc., it is normally the case in relation to arms-length employees that employments may be regarded as continuous for the purposes of calculating maximum permissible benefits.

IMO you should be able to transfer the full amount to the new scheme?

 

[JoeRoberts]

I don't believe section 13.10 is relevant here.

What rules is the Trust Deed of the Scheme. The 2 years stipulation is normal.

However you should be able to negotiate with the company that you get the employer portion transferred. I can't see that they would object. They probably have not even considered it to be honest.

If that doesn't work there is an Eu Directive called TUPE which may cover you. It protects pensions and rights in cases of mergers/takeovers/transfers of undertakings etc and may apply to you.
I don't know the "ins and out" of it though but you can google for it.

BTW, in any case you would get the current value of the em'er contribution, not the actual contribution.

Let us know how you get on.