2 simple questions on pensions

[nbc]

Hi,
Not my area so could do with some help even if the questions sound silly.

1) If I start a pension with for example bank of ireland but after 3 years feel they're not doing as well as lets say eagle star is there a problem changing? What happens to the money I have already contributed.

2)I have an option of buying back up to 6 years with the health service executive. It's a defined benefit scheme. I feel this is a pretty good way to spend money rather then putting in much larger amts(up to my max threshold) in a new(private...no longer working with hse) pension which would be defined contribution. Am I right?
Thanks
nbc

 

[ClubMan]

1) If I start a pension with for example bank of ireland but after 3 years feel they're not doing as well as lets say eagle star is there a problem changing?

In general - no. Be careful about charges (including "initial units" which are charges by another name) and any terms and conditions that might involve penalties for stopping/varying contributions or moving to another provider. Not as common these days as they used to be but they could still crop up from time to time.

What happens to the money I have already contributed.

You can leave it in the original fund or transfer it into the new PRSA or personal pension plan.

2)I have an option of buying back up to 6 years with the health service executive. It's a defined benefit scheme. I feel this is a pretty good way to spend money rather then putting in much larger amts(up to my max threshold) in a new(private...no longer working with hse) pension which would be defined contribution. Am I right?

There are plenty of existing threads about DB schemes and buying back service that might be of interest to you.

 

[orka]

What happens to the money I have already contributed?

As Clubman has suggested, after just 3 years there may be a penalty for transferring - here is a practical example which may be of interest to you - I have just taken out a lump sum pension with Eagle Star and there are penalties for moving before 4 years have passed - presumably because they give a good allocation rate (if it's nil commission) or have to pay commission to a broker (if it's not). I got over 100% allocation after the bid/offer spread so I think it's fair enough that I can't take my 'free' money with me if I leave too soon.

 

[ClubMan]

That's why I said look at charges and penalties etc. In general I would tend to avoid high or opaque charges or lock in penalties and the like. Especially when it's possible to get totally portable PRSAs with charging structures of the form of 0% on each contribution and an annual management fee of 1% for a fixed once off arrangement fee of a few hundred euro.

 

[nbc]

Thanks Clubman and to the other contributer. Appreciate the advice.
nbc

 

[Guest126]

Hi nbc...if you are now working for a new company (not HSE) then I doubt you can contribute to the HSE Superannuation Scheme, unless the Governement has made a special concession for ex-employees that want to buy back years, but normally if you are no longer employed by a company then you can no longer contribute to that related pension scheme.

 

[ajapale]

Hi nbc,

your original post is a little confusing.

are you still working with the hse? do you intend to continue working with the hse (or related public service organisation) for the rest of your working career? What age are you now?

aj