What happens to pension if I give up my job for a year

R

RowanTree

Registered User
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36
Hi
I have a pension of 14 years with my current employer and managed by Mercer. If I give up my job for a year , take a year out, what do I need to do with my pension in that year? Would Mercer maintain the pension holding for the time I'm not contributing for a fee?
Thanks very much
 
It stays where it is and it stays invested. You don't have to do anything. If you come back to your job after a year out, it will just restart again. Mercer will continue to charge as they usually do. For most large group schemes, the fees are pretty low anyway and maybe your employer is paying them.


Steven
www.bluewaterfp.ie
 
Advice would be different if it's a defined benefit scheme (unlikely in this case). Leaving a DB scheme locks the benefits in at leaving-date salary (with statutory revaluation increases thereafter). If you rejoined you would likely (unless you have a generous employer) start accruing benefits as a new entrant. If you are able to rejoin the DB scheme, you would have lost the final salary link for your prior 14 years service. More likely, you would be rejoining a defined contribution scheme and not a DB scheme.
 
Its a defined contribution scheme so hopefully first reply is more applicable to me.
Thanks
 
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