leaving my current employer - pension locked?

G

Gilliebean

Guest
In brief I have been paying into the pension scheme for a little over two and a half years. I paid 5% and the company 5%. I have been offered another job and won't be elliglble to join their pension scheme for 6 months. As a result I wanted to do one of two things, either take the pension with me or cash it in. So I asked my manager to look into it for me. She initially led me to believe that I could cash the pension in, however she later came back to me and told me that as I had had the pension for over 2 years I couldn't due to a new law. I had to leave the pension where it is. Is this correct. Can I not touch the monies that I have saved to date? Can I get the monies transfered? Is it locked now until I retire? Any and all advise is really welcome as I am a complete novice where pensions are concerned. Thanks
 
You can transfer it to your new company (when you join their plan).

You should wait until you join the new plan before transferring from your old company (you could alternatively transfer to a buy-out bond but may not be any advantage in doing that).

The only truth in what your manager told you is that you can't cash it in (because you have over two years service in the pension scheme - Pensions (Amendment) Act 2002).
 
Thanks CapitalCC. Can you tell me what is a Buy out Bond?
 
You're welcome Gillie.

It is a contract between you (the person with the pension) and an insurance company (for example Irish Life) that would allow you to transfer your money from a previous company pension (such as the one you're leaving) and you can then invest it throguh that insurance company instead - useful if, for example, you do not want to have any more dealing with your old employer AND you are not with a new company that has a pension plan.

HOWEVER if you are in a new company with its own pension the smoothest thing to do is usually transfer in to the new company's pension.

I hope this helps.
 
Thanks y'all. I'll just transfer it I guess. Probably sounds stupid but could have done with the monies as currently doing up the house....ho-hum.....but I know I'll look back in 40 years time and say 'ain't I glad I kept that penion going!' So thanks again
 
That is the spirit Gillie - no matter what you do with it, you can't get your hands on it (in any normal circumstance).
 
You could only have gotten your hands on it (at least you own personal contributions less tax) if you had been in the scheme for less than two years (including any vesting time "transferred in" from a previous scheme) and even then it might not have been a good idea...
 
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