# transfer one occupation pension scheme into another



## bubbles (22 Sep 2003)

There is an article on pensions in today's Money supplement of the Sunday Times.

In a Q and A at the bottom of the page, the question is:

*I am in a company pension scheme but I'm leaving my job soon to set up my own firm. Can can I do with my company pension?*

part of the answer is:

*setting up a new occupation scheme of your own, through you own company, with just one member. You  can either contribute to this afresh, or transfer the funds from your old scheme into it as long as it was for less than 15 years.*

The reference to the 15 years surprised me. Does this mean that if you have been in a previous occupational scheme with an employer for more than 15 years, you cannot transfer the accumualated fund into a new pension scheme?

Bubbles


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## Savy (22 Sep 2003)

bubbles,

**errored comment removed**
S


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## ClubMan (22 Sep 2003)

Can't find any _Revenue_ link about this "15 year rule" and the Pensions Board FAQs don't seem to mention it either. That's not to say that it doesn't exist but just that I can't find anything authoritative on it...


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## bubbles (23 Sep 2003)

*do you have more info?*

Thanks Savy, I knew this was the case if you wanted to transfer from an occupational pension scheme or a buy-out bond into a PRSA, but I have never seen this concerning a transfer from one occupational scheme to another.

Can you tell me where you got your info from?

thanks
Bubbles


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## Savy (23 Sep 2003)

*Re: do you have more info?*

bubbles/Clubman,
apologies for my posting this incorrect information. I will amend the post so as not to confuse people.
I believe that I too was referring to occupational to PRSA movement which has the constraint that there must be less than 15 years service.

I have no information on whether there is a restriction on occupational to other schemes.

S


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## Savy (23 Sep 2003)

*replacement of bob*

I didn't know but buy out bonds are been done away with
(Section 122 of 2003 Pensions act).

I suppose this is simply part of streamlining of the pensions industry with people moving money in to PRSA's instead

S


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## RAIPI (2 Oct 2003)

*BOBs and transfers between schemes*

BOBs have not been done away with ..yet. Relevant section, Section 122 of Pensions Act, has not yet been invoked by regulations.

Re transfer from one occupational pension scheme to another there is and never has been 15 year bar; the 15 year bar refers only to transfers from an occupational pension scheme to a PRSA.


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## bubbles (2 Oct 2003)

*transfers*

thanks for replies.

Are there any restrictions on transferring from one occupational pension scheme to another?  

 I presume you can also transfer a BOB into a new occupational pension scheme?

regards
Bubbles


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## RAIPI (2 Oct 2003)

*Transfers from occupational pension scheme*

There are no legislative restrictions as such on transfers from one occupational pension scheme to another. Indeed the opposite is the case, as Section 34 of the Pensions Act gives people who leave occupational pension schemes with an entitlement to a statutory preserved benefit (which you are entitled to after 2 years service in the scheme) the right to opt to transfer that benefit to another scheme, a BOB or to a PRSA. The choice of BOB or PRSA would be yours.
However transfer to a PRSA is subject to the scheme rules allowing such a transfer, 15 year maximum scheme service, you must be ‘changing employment’, and the PRSA company has to give you a comparison of the projected benefits you would get if you left the benefit in the scheme as against what the PRSA might provide instead as well as justify the transfer in writing to you! Effectively its nigh nearly impossible to transfer from a scheme to a PRSA, even if it appears that you are entitled to do so. 

You have this right to transfer out your scheme benefit for at least 2 years after termination of employment; after that it’s at the discretion of the scheme trustees whether to allow you to transfer out or not, but most would allow the right to continue.

After the expiration of the 2 year period, the trustees have the right to transfer you out against your will to a Buy Out Bond of their choosing if your transfer value is < €3,800, but in reality most schemes wouldn’t do this unless the scheme was winding up.

Re transfer to another scheme, of course the other scheme has to be prepared to accept your transfer, which they may or may not be but most would be.
There is one important advantage in transferring your benefit to another scheme, as opposed to a Buy Out Bond or PRSA. With your new employer you would normally have to serve 2 years service in the new scheme before becoming entitled to a statutory preserved benefit on subsequent leaving your new employer. However if you take a transfer value in from another scheme into your new employer’s scheme, the service in the other scheme counts towards this 2 year requirement, so that you will be entitled to a statutory preserved benefit in your new scheme from day 1.

Example: you leave scheme A with a TV entitlement of €20k. This relates to a 4 year period of service. You join new employer B who operates a scheme which you join on day 1. If you leave your TV in the old scheme or transfer to a BOB or PRSA, you won’t become entitled to a statutory preserved benefit in relation to new employer B’s pension scheme, until you complete 2 years service with B. However if you pay in your TV of €20k into the new scheme, you are deemed (for the purpose of entitlement to a statutory preserved benefit on leaving employer B) to have already served 4 years and so you would be entitled to a preserved benefit from B’s pension scheme from day 1.

Yes you can transfer a BOB to an occupational pension scheme, if the scheme’s rules allow transfer values to be taken in.


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## bubbles (9 Oct 2003)

*thanks*

Thanks RAIPI, was away for a few days so only so your reply today.
regards
Bubbles


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