Changed employment - pension options??

Hi,

Recently I have changed employment. At my previous workplace I had DC pension set up and was contributing for several years. At the moment, I want to "pause contributing" for 6 months.

I got a letter from my broker asking me what do I want to do with my pension, and tbh, I have no clue what is the best option if I want to "pause" the contributions for few months. Here are the options:

a) Transfer value to a similary approved pension scheme by new employer - obv I want to do this, but in a few months

b) transfer to personal retirement bond (????) - have no clue what this is

c) transfer to PRSA

d) deffered pension payable from age 65


Any advice what should I go for if I dont want to contribute for few months and then continue contributing???

Thanks in advance

You can transfer your pension at anytime between deferrment at 65 - so just wait a few months and start a new pension when you are ready. Leave the old pension where it is, and if you want to tidy up things in a year or two transfer it then.

sbp123 said:

b) transfer to personal retirement bond (????) - have no clue what this is

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It's basically a standalone pension investment in your own name rather than tied to a group scheme. Also known as a buy out bond. Do a search for previous posts on these and on the general issues/options relating to pension options on moving employment.

On a related topic, i’m currently in the process of transferring a DC pension from a previous employer to an existing employers DC pension scheme.

The following are the details I got from the pensions company used by the previous employer

You should note that in the event of transferring payment to your new company’s pension plan that the
“Reckonable Service covered by the Transfer Payment will be taken into account for the purposes of calculating statutory pension entitlements in your new company pension”

I’m not to sure what this means ?

spud said:

The following are the details I got from the pensions company used by the previous employer

You should note that in the event of transferring payment to your new company’s pension plan that the
“Reckonable Service covered by the Transfer Payment will be taken into account for the purposes of calculating statutory pension entitlements in your new company pension”

I’m not to sure what this means ?

Click to expand...

Hi Spud

A pension scheme member who leaves service is entitled to hold onto the value of the employer's contributions to the scheme provided he or she has a total of two or more years' Qualifying Service.

Qualifying Service includes your service as a member of the scheme plus any service (post 1991) under a previous scheme in respect of which you have taken a transfer into the current scheme.

Therefore, if you take a transfer into your current scheme from a previous scheme, it will bring forward the date on which you 'lock in' your entitlement to employer contributions under the current scheme. (Unless your current scheme provides immediate vesting, which would be very unusual).

Regards
Homer

So you wouldn't have to wait a full two years to be able to claim the new employers contributions?

Thank you for replies, as it is suggested by DOn, I will just let it rest for few months and then transfer to new scheme under my new employer.

PaddyW said:

So you wouldn't have to wait a full two years to be able to claim the new employers contributions?

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That's correct. Any "transferred in" service will count towards the two years.

Homer

That's good to know, thanks Homer.