# Leaving Defined Benefit pension



## dublin1969 (25 Jun 2006)

Hi,

I am leaving a DB company pension scheme as I am moving job. The new employer does not have a pension scheme but will match my pension  contributions up to a max amount of 5% of salary.

The DB pension offered two-thirds of final years salary and my employer contributed to that for 10 years. I understand that I will not lose this 10/60th contribution. .Is this correct ?

I would like to continue pension contributions thru' new employer with the intention of retiring at 60 with a two-thirds of salary pension, similar to what I had in previous job.

How much do I need to contribute to new pension ? Is there a pension calculator available to help ? I plan to contribute at least 5% of salary and this will be matched by employer.

Previous employer also had a "death in service benefit" which was 4 times my salary. Can a similar benefit be included in a PRSA ?

My salary is eur 48,000 and age 36.

Thanks in advance for any help or guidance you can offer.


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## GeneralZod (25 Jun 2006)

The Pensions Board have a calculator that will give you an estimate.

It sounds like you'll have to contribute substantially more of your salary than 5% + the 5% from your new employer to build up a sufficient DC fund.

I hope you're getting a big pay increase to make up for the loss of the DB pension.


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## asdfg (25 Jun 2006)

> The DB pension offered two-thirds of final years salary and my employer contributed to that for 10 years. I understand that I will not lose this 10/60th contribution. .Is this correct ?


 
Yes, you will need to know the value of the fund from your current employer 



> How much do I need to contribute to new pension ? Is there a pension calculator available to help ? I plan to contribute at least 5% of salary and this will be matched by employer


.

You could try the Pension Board to start off with 
See also pensions discussed on AAM 



> Previous employer also had a "death in service benefit" which was 4 times my salary. Can a similar benefit be included in a PRSA ?


 
Not sure if this can be included in a PRSA. It may have to be funded seperatly by life insurance.

Post crossed with General Zod


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## Guest126 (25 Jun 2006)

PB Calculator is not very cautious - I would be inclined to add 5% to the contribution rate it recommends, unless interest rates will reach 5% again by time you retire.

Your new company should provide some form of life cover?

The 10/60ths will entitle you to either a deferred pension from the company you are leaving, or to transfer a certain size fund from the company that you're leaving...it often makes sense to not transfer the fund because the way that fund is calculated is not overly generous.


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