Moving Job - pension implications?

S

sluice44

Guest
Hi,
An English company are setting up an Irish operation and have asked me to run the show. I will be their only Irish employee for a while (maybe a year or more).

I have a defined contribution pension (5% salary/5% company) with my current employer. I've been contributing to the pension for 2yrs and 2 months so the companies' contributions are 'vested' with me. Is this right?

The English company has said I should just keep my current pension (Eagle Star through IFG) and they'll pay their contributions into this scheme. Is this possible and/or wise? Or should I go with a PRSA?

Any advice would be appreciated.
Sluice
 
C

Chord of Souls

Guest
It's not that simple. Because your old employer and your new one are two unrelated companies (right?), you'll have to stop the current plan and start another. Yes you can continue to pay to Eagle Star if you're happy with them, but it will be a new plan. When the new one is established, you can transfer your benefits from old plan into new plan. That has implications for vesting periods.

If you're happy with the IFG service, you can stay with them. Make sure you know exactly what they'll charge you for setting up the new plan. Or ask one of the brokers that post here on Askaboutmoney.com for a quote.
 
S

sluice44

Guest
Thanks for the reply. I've asked a similar question before and I always have trouble getting my head around this issue.

When the new one is established, you can transfer your benefits from old plan into new plan. That has implications for vesting periods.
I pay 5% of my salary and my current employer pays 5% as well. This is now worth approx €8k (4k + 4k). Since I've worked with them for more than 2 years, I (or my pension) gets to keep the lot?

I don't understand your point about 'implications' after the pension is transferred or am I misunderstanding you?

Thanks
Sluice

Good advice about using the professional services of some of the contributors on AAM. I just have to learn the lingo before I go to see them! O has some links here.
 
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