Entitlement to transfer

There has been much discussion on these pages about moving an old pension to a new employer’s scheme. I have been unable to find an answer to this question:
Am I entitled to transfer my old benefits to a new scheme?

In particular, I have an old scheme in which I have many years of accrued benefit. I expect to be in the current scheme for 18 months at the time I leave. If I can transfer the benefits from my old scheme to the current scheme then I can keep my current employer’s contributions. However, my current employer will not permit employees to transfer benefits until they have been in the scheme for 2 years (for obvious reasons). Are they allowed to do this?

Yes, I think that they are. If you were a member/employee for more than 2 years, the rules would be different.

The following is taken from the Pensions Board site:

What happens to my pension if I change jobs?

Thanks to the Pensions (Amendment) Act, 2002, if you leave service after June 1st, 2002, with at least two years' service in your scheme, you will be entitled to preservation of benefits. Furthermore, if you were in the scheme prior to 1991, the value of any pre-1991 pension benefits will also be preserved. (See pages 23 and 24 of the Pensions (Amendment) Act, 2002, FAQs which illustrate the position.
You can't cash the benefits on leaving service but you have several options, all of which 'preserve' your pension until retirement. You can:
a) opt to keep the benefits in your former employer's pension scheme, or b) transfer them to another funded occupational pension scheme provided by your new employer, or c) transfer them to a Revenue approved insurance policy or contract, sometimes called a Buy Out Bond.
The Pensions (Amendment) Act, 2002, provides the following additional options for transfer to:
(d) an unfunded (i.e. public sector scheme) of which persons are, or are becoming, a member and the trustees of which are willing to accept the transfer;
(e) a Personal Retirement Savings Account subject to certain conditions. (For further info please see the PRSAs – A Consumer Guide Booklet under Related Files below and the PRSA Section under Related Links below)
Note that the Act also allows for the Minister to make regulations permitting the transfer payments to be made to pension arrangements outside the State. (For further info please see question below).
Some schemes give non-statutory 'preservation' within a shorter period, so check the members' explanatory booklet.

Ah! But that 2 year limit relates to the time in the old employer's scheme.
As it happens I have 7 years of contributions in the old scheme. I wish to take option b) above. The question is can my new employer deny me this opportunity?

As far as I know in the past employers were entitled to place service time limits on the transfer in by employees of existing occupational funds and I don't know if this was ever changed in the meantime.

That would be good to know. It appears to me the idea of being able to transfer my 7-years of vesting is meaningless if employers are permitted to prevent it. Why would any employer ever allow it? They'd just be throwing money away!

I worked for a company about 10 years ago who allowed new employees with existing occupational funds to transfer in immediately and secure the benefits purchased with employer contributions which surprised me and was a bit of a no brainer since the normal vesting period for securing the benefits purchased by employer contributions was two years for those without such a fund to transfer in. Obviously I transferred in and availed of this offer even though I only stayed in the job for about 8 months. As far as I know this arrangement was unusual at the time so perhaps the same applies these days? A call to the Pensions Board should clarify and give you an authoritative answer.

Thanks Clubman,

I sent an email but have no response yet. Meanwhile from:
[broken link removed]

Benefits in return for transfer payment
If an early leaver opts for a transfer payment to his or her new
scheme, the trustees of that scheme must accept such payment
and provide benefits equal in value to the amount of the transfer
payment. The benefit provided must be preserved in full if the
member later leaves the service of the new employer whether or
not it relates to rights accrued before or after 1 January 1991 in the
other scheme.