Transferring Pension from old employers scheme question

I

Irishchappie

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I moved from my old job about 14 months ago, which I was in for nearly 5 years and had a pension with them for over 4 years. The job I moved to I was only in short time (under a year), not long enough to be eligible for the companies pension scheme before I was made redundant..

I'm looking to start a new job soon and as with most jobs,will have to be in it for a minimum of 6 months before I eligible for the company pension scheme.

The original pension broker who was looking after the pension scheme for the original company knows the situation and I've explained to him that I'm waiting until I'm eligible with this new job to transfer my pension over but he is getting increasing impatient and increasingly persistant that I move it asap as he is not longer being paid to maintain it and there are no contributions going into it in that last 14 months.

I've asked him for these and his option were:

Move it to a new pension scheme of the company you are in now (which I've explained to him that I cant yet)

or

Cash it in (not something I want to do)

So what are my options?

Is there a short term pension scheme I can transfer this sum into that will allow me to make contributions while Im waiting to join the new company scheme and then transfer into that?

I.C
 
You can't cash in if you were paying into it for more than 2 years, as I found out myself!
 
You can transfer it to a personal retirement bond with an insurance company and transfer it from there to your new pension scheme. However there might be a charge for doing this, you would need to negotiate with a broker. I'm a bit confused as to why your "old" broker is pressuring you to move your pension out. This seems a little underhand, and depending on the value of your fund they can't force you to transfer you. I can't remember the exact limit, it's something around 4K, but if your value is over this, you cannot be made to move out. If you are seriously coming under pressure to do this, suggest you put a call in to the Pensions Board or indeed to the trustees of the old scheme to see what they make of it.
 
You can transfer it to a personal retirement bond with an insurance company and transfer it from there to your new pension scheme. However there might be a charge for doing this, you would need to negotiate with a broker.
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Thats fine, I dont mind paying a reasonable amount.

I'm a bit confused as to why your "old" broker is pressuring you to move your pension out. This seems a little underhand, and depending on the value of your fund they can't force you to transfer you. I can't remember the exact limit, it's something around 4K, but if your value is over this, you cannot be made to move out.
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Yes, its well over the €4k amount, closer to €20k limit actually.

Well I've had about 5 letters from him all signed personally by him over the last 6 months asking him what I plan on doing. He is getting very persistant about it.

If you are seriously coming under pressure to do this, suggest you put a call in to the Pensions Board or indeed to the trustees of the old scheme to see what they make of it.
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Cheers, I might just do this.

I.C
 
A Personal retirement bond is a single premium product so you won't be allowed to make regular contributions to this - some companies allow top-ups/additional SP's but it varies from company to company.

Your new employer should have a PRSA scheme set up for its employees under the new regulations. You could transfer it in there (standard PRSA, low charges set by law), make regular contributions, and transfer it back out to the pension scheme when you join.

I would agree with the point re the old scheme and the guy trying to force you out. He is not allowed to do this once the amount is over IR£3k (old money!). He is only trying to do it so it saves him a bit of admin work.

When you joined that scheme and made your contributions, he would have been earning commission on your regular payments. Part of his job is that if your benefit is paid up, he has to keep your records on file.

To me its a clear case of him thinking you don't know the legislation/rules on this and he can trick you into taking it out. You don't have to - and if you are, don't be rushed into it until you join the new scheme.
 
Despite having invested money in a company scheme for three years under the impression it was a flexible scheme, and then opening a PRSA scheme with the same fund, I was advised against moving the company scheme money into the PRSA. The cost was higher than freezing the company pension. Why did he not offer you to just freeze the company pension fund?

Fanny
 
Your new employer should have a PRSA scheme set up for its employees under the new regulations. You could transfer it in there (standard PRSA, low charges set by law), make regular contributions, and transfer it back out to the pension scheme when you join.
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Yeah they have one alright, but as is usually the case, the first 3-6 months are a probationary period and until this is complete you're not eligible to join this scheme until this period is over. So I'm holding out until I can transfer to this.

I would agree with the point re the old scheme and the guy trying to force you out. He is not allowed to do this once the amount is over IR£3k (old money!). He is only trying to do it so it saves him a bit of admin work.
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It does appear that way alright, he's not very forth coming with advice when it comes to the pension fund itself and like I said, the letters from him are coming thick and fast, so its a case of he will have to put up with it until I'm ready to make my next move.

When you joined that scheme and made your contributions, he would have been earning commission on your regular payments. Part of his job is that if your benefit is paid up, he has to keep your records on file.

To me its a clear case of him thinking you don't know the legislation/rules on this and he can trick you into taking it out. You don't have to - and if you are, don't be rushed into it until you join the new scheme.
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Oh I wont be rushing into anything, dont worry about that. This guy seems to think Im some sort of pushover and he is gonna get a but shock when he sees what I can do.. :D

Cheers for all the info guys.

I.C
 
Just to let you know there is an issue with transferring from an occupational scheme to a PRSA. The legislation states that is your fund is over 10K, you must get a "statement of comparison" to show you'll be no worse off by transferring from your employer's scheme. It is designed to stop any mis-selling such as happened in the UK, but it affects a lot of people who wish to transfer on good grounds. The statement of comparison afaik is available from selected firms, such as some as the big accountancy firms, who will charge handsomely for it, I think the charge is in the region of 3K typically. So you might need to rethink your options. If you have to wait 6 months before you join it'll give you a chance to get sorted on what you want to do at least.
 
Hi there, the trustees can make you transfer out of scheme once you have been gone for two years.however this case sounds like broker just wants to make you take a bond rather than a trustee decision and the broker cant do that.
 
hi rdrr
question
"When you joined that scheme and made your contributions, he would have been earning commission on your regular payments. Part of his job is that if your benefit is paid up, he has to keep your records on file."

if the pension is frozen/locked from a previous job and not transfered to new job is his commision still the same( being drawn from the locked fund)
 
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