Any reason not to transfer PRSA and PRB to DB scheme?

J

jassub

Registered User
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I'm currently in a defined contribution company scheme.

I've also got a reasonably substantial PRSA that I paid into in one previous employer, and a small personal retirement bond that I opened with the proceeds of my defined contribution pension from another pervious employer.

I can transfer both of those into my current company scheme without charges.

I can think of several reasons which make that attractive:-
- a far wider choice of funds that either the PRSA or PRB provider
- far better online portal to monitor performance, change funds etc.
- scheme projections and required contributions to hit targets would be valid, rather than requiring me to consolidate three sets of figures by myself

Is there any reason why I shouldn't? I'm wondering in particular if there are any features of a PRSA that make it attractive to keep funds there rather than transferring them to a defined contribution scheme.
 
You would be tied into taking all your benefits at the one time, currently you probably can access your PRB & PRSA anytime from age 50. If you transfer it and stay working where you are you can't draw it down until you retire from there.

If you are approaching the €2m SFT limit this is even more important to think about, you crystallise and fix the fund contbriting to the SFT limit once you access them.
 
The reasons stated aren't very good reasons.

- How many of these funds do you want to invest in? If you are in an passive equity fund, they should all be performing the same anyway.
- The other two are superficial

If you transfer your benefits to the new scheme, your benefits become part of that scheme. As DBL stated, you lose control of when you can draw down benefits. Also, if you died before retirement, the retained benefits in the PRB and PRSA are paid out tax free. If transferred to the scheme, the maximum pay out is 4 times salary. An annuity must be purchased with the remainder.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Heading says DB (Defined Benefit) but your first sentence says that you are in a DC (Defined Contribution) scheme. There is a difference.
 
Thanks for replies - the error was in the thread title, should have been DC but I don't seem to be allowed edit it.
 
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