Old Pension

L

lookwest

Guest
I have a pension which I deferred in my previous job. This meant that on reaching 65 years of age I would draw down a pension from that employment which had 16 years of contributions between 1983 and 1999. I believe that it was heavily oversubscribed. I have since joined another pension scheme but I did not transfer over any of the old pension. I have now heard that the previous company has been closed down over a year and I have had no communication in relation to that pension since 1999. I am concerned? What should I do? Any recommendations?

Regards,
Lookwest
 
lookwest said:
I have a pension which I deferred in my previous job. This meant that on reaching 65 years of age I would draw down a pension from that employment which had 16 years of contributions between 1983 and 1999. I believe that it was heavily oversubscribed. I have since joined another pension scheme but I did not transfer over any of the old pension. I have now heard that the previous company has been closed down over a year and I have had no communication in relation to that pension since 1999. I am concerned? What should I do? Any recommendations?

Regards,
Lookwest

I imagine contact the financial company the original pension was held with. They will be able to give you a pension overview statement. To transfer it to your current pension plan fill in the statement and return it to your current providers.
 
Take care if you are considering transfering this as based on the age of the contract it might well be a Defined Benefit Scheme.
 
KK is that a reason not to move?

I have 3.5 years of a defined benefit plan and now I have 1 year of defined contribution. I hadn't got around to amalgamating them yet but I was planing to, bad idea?

Sorry to hijack!
 
Welcome Kazbah, no problem hijacking!! It really all depends on what the defined benfits are. Many are linked to inflation or future salary sales, etc. If you move, you are then dependant on what you get under Defined Contribtuion. More often than not, it is recommended not to move. What you need is details as to what the benefts are under the old scheme as this is clearly defined. One benefits that you may have if you are transfering and you are intending to leave within the two year, is that you carry years of service over so if you leave and the new scheme has the rule that the employers contribtuions are take back, they cannot as you effectively have 4.5 years service. But this would have to be quite a benefit to forfeit the guarantees under a Defined Benefit Scheme. Each case differs, you really need to do some comparisons as to what you will get as to what you could get based on growth rates and also annuity rates. Would be great to have a crystal ball.

I would not be surprised in the coming years that advice given to transfer out of DB schemes into DC schemes were considered bad advice. In the UK where I practiced for some 15 years, many advisors were fined for recommending such transfers (you may recall the big scandle in the UK over the miners pensions) and now you have to be qualified in a specific exam to even discuss this.
 
I intend to leave my current job in order to return to full time education by Sept 2006. So if I transfer my defined benefit pension to my current one I can take my employers contributions with me?

With my DB pension I am guarenteed €904.19 per annum of €2,034.44 plus €678.14 per annum.

I still haven't returned the form one way of the other to indicate whether I am taking deferred benefit or the transfer value. Do you think I should go and talk to a pensions specialist?
 
Depends on what the transfer value is, what you can buy for this, whether you are prepared to take the risk that the transfer value could actually give you less than the guarantee under the DB Scheme.

If you do transfer you will be transfering years of service so your years of service under the new scheme is both together. You didn't have a gap between employments.
 
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