# Transferring PRSA to a company pension



## Aesop (12 Dec 2007)

My current company have a pension plan whereby you have to be with them for a minimum of two years in order to take the employers contribution with you when you leave. 

I am in the company 12 months. I will transfer a PRSA into my current company pension (I opened the PRSA while working a contract job a few years ago). My question is what length of time will I bring with me when I transfer the PRSA. One person has said it will be based on the amount I am transferring. Another has said that it is simply the amount of time I was contributing to the PRSA. 

The problem is I put in a lump sum into the PRSA in Dec when I opened it and then contributed regular amounts for 6 months after that. It's unclear to me how much time this amounts to.


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## MMilken (12 Dec 2007)

AFAIK there would be no service credit in the occupational scheme in respect of a transfer from a PRSA.


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## Moneymanager (28 Dec 2007)

Suggest you keep your PRSA separate. 
If you transfer to the company DC scheme your options on retirement will be reduced - eg you will have to buy an annuity whereas with a PRSA on retirement you can ( after taking 25% tax free) invest the remainder in a post retirement fund (ARF) which can be used to provide your income ( but subject to PAYE).  
An annuity may suit you better but most people I think would prefer to control their investments especially if they have a partner / family.
If your Co scheme is a DB scheme assuming you decide to go ahead with the transfer you need  to be sure you are getting a fair deal on service years as in my experience the calculations done here tend to be rather conservative & difficult to check.  
Save yourself the bother & leave your PRSA intact. You could use it again if you decide go out on your own again.


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## Aesop (2 Jan 2008)

Many thanks for the comments. I talked to our company pension provider and it does indeed appear that a PRSA cannot contribute years service to an occupational scheme so separate they shall remain.


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