Leaving a Defined Benefit plan for defined contribution

J

JaneBloggs

Guest
Hi ALl,

I'm moving job and I'm not sure what to do about a pension. I am 25 going on 26. I have been in the scheme 3-4 years. I have paid contributions. Should I leave it where it is. My new pension my employers will put in 5%. I think it think one they put in about 7%.

thanks,
JB.
 
Hi Jane, and welcome to AAM

Have a read of the Defined Benefit and Defined Contribution key posts at the top of these pages. If you have any more questions or if you dont understand the FAQ's then be sure and post them here.


ajapale
 
Hi Jane - Can you be more specific in your question(s)? Are you asking about what to do with the contributions in your old scheme? If so, what options are the trustees of the scheme offering you?

Or are you asking about what to do with your new employer?
 
I'm bascially wondering should I cash in my old pension and say use it as a deposit for a house.
Or leave it where it is.
Or move it to my new pension plan.

Thanks guys!
 
Hi Jane

The following pdf document from the pensions board is usefull.

I dont think you have the option to "cash" in your old pension. After that the general concencus seems to be to preserve your benefit in the old Defined Benefit scheme.

How secure it the company you are leaving?

Since this area of pensions is "among the most complex in the Pensions Act" you might want to seek independent financial advice.

[broken link removed]

Subject to certain conditions, the Pensions Act 1990 ensures that the entitlements earned by members in respect of service in their pension scheme after 1 January 1991 can be:

■ preserved in the scheme they are now leaving; or
■ transferred to their new employer's scheme; or
■ transferred to a policy or contract with an insurance company.

The Pensions (Amendment) Act 2002 (the new Act) reduces the period of scheme membership needed to qualify for a preserved benefit. The provisions on preservation and transfer of benefits are among the most complex in the Pensions Act. They are also, for many, among the most important.

This booklet is a guide to these provisions. You should read it if you are thinking of changing jobs or have already done so. It is designed to help you understand your rights and options in relation to the benefit entitlements you have built up and your right to information on these matters.
Click to expand...

ajapale
 
Thanks - of course you're right I can't cash it in my mistake.
I think I will leave it where it is.
The company I'm leaving is very secure.
thanks for your advice.

JB.
 
You must log in or register to reply here.
Back
Top