# Non Contributory Pension



## 90210 (5 Aug 2005)

Hi All

What is the norm with Non Contibutory pension when you leave a company , say for example , 5 years in a company and they have contributed 33% of gross salary each year to the pension scheme , is this all wiped away if you choose to leave the company ? Or is it transferable ?


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## Westbound (5 Aug 2005)

If you left after 01/06/2002, then once you have 2 years service your benefits have to be preserved (deferred) for you. Before this date it was 5 years before preservation of benefits.

You then have the choice to leave them where they are, transfer them to your new employers pension scheme, a Personal Retirement Bond or a PRSA (subject to certain conditions).


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## 90210 (5 Aug 2005)

Many thanks for the advice Westbound


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## RainyDay (5 Aug 2005)

90210 said:
			
		

> What is the norm with Non Contibutory pension when you leave a company , say for example , 5 years in a company and they have contributed 33% of gross salary each year to the pension scheme ?


Forgive my ignorance, but how come you're contributing to a non-contributory pension - Isn't this a contradiction?

And the 33% is quite high and exceeds pension limits (unless you are getting reasonably close to retirement age yourself).


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## RS2K (6 Aug 2005)

RainyDay said:
			
		

> Forgive my ignorance, but how come you're contributing to a non-contributory pension - Isn't this a contradiction?
> 
> And the 33% is quite high and exceeds pension limits (unless you are getting reasonably close to retirement age yourself).



Poster said co. was contributing, not him. No contradiction.

Revenue maximum funding limits are quite high. 100% of salary is possible and allowable for somebody in their 30's. A 30% employers contribution is much higher than the norm however.

400 or 500% of salary is possible for somebody near retirement.

Advice for others. Negotiate full vested rights from the outset. Sorted.


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## dam099 (6 Aug 2005)

RS2K said:
			
		

> Revenue maximum funding limits are quite high. 100% of salary is possible and allowable for somebody in their 30's. A 30% employers contribution is much higher than the norm however.
> 
> 400 or 500% of salary is possible for somebody near retirement.


 

They are nowhere near that, the limits are:

Up to 30 years of age 15% of net relevant earnings​30 up to 40 years of age 20% of net relevant earnings
40 up to 50 years of age 25% of net relevant earnings
50 years plus 30% of net relevant earnings


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## LDFerguson (7 Aug 2005)

No. The age-related limits you refer to are only for PRSAs and _personal_ contributions to other types of pension arrangements.

Employer contribution limits to Occupational Pension Schemes which this thread refers to, are far higher.

Liam D Ferguson
[broken link removed]


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## RS2K (7 Aug 2005)

dam099 said:
			
		

> They are nowhere near that, the limits are:
> 
> Up to 30 years of age 15% of net relevant earnings​ 30 up to 40 years of age 20% of net relevant earnings
> 40 up to 50 years of age 25% of net relevant earnings
> 50 years plus 30% of net relevant earnings



I think you'll find these are the max. contributions against income tax into a ppp, or prsa.

What we are discussing are corporate pension plans, for which the rules are entirely different.


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