Moving pension to PRSA

D

Droxol

Guest
I left a company recently and had 3 years contributions, where the employer matched my contributions to 6%, I am told I cannot cash it in..

Will I be able to move my contibutions + employers to a PRSA ? Without any penalties... ?
 
As far as I know as long as you have something less than 15 (?) years membership of an occupational scheme then you may be able to transfer it to a PRSA. Check the Pensions Board website from more on the options available to occupational scheme members when they are changing jobs:

www.pensionsboard.ie

When you are leaving you should be given a transfer options form which outlines your options in this regard. Note that, as explained in other topics here about changing jobs, merging pension funds is not necessarily a no brainer and should only be done if it offers you (a) lower charges (b) better flexibility (c) a better range of fund options (d) ease of administration. In some cases maintaining more than one pension fund (albeit usually only one active at any one time) may be appropriate. See this topi for more on this:



If in doubt about what to do or what is most appropriate for your individual circumstances then you should consider obtaining independent, professional advice (not from any tied agent though!).
 
Difficulties....

At present there are difficulties in transferring from Occupational Pension Schemes to PRSA's. It's next to impossible. There are moves afoot to try and remove these obstacles.
 
Thanks Alan. I guess while the legislation is (?) there to support this it's just not pragmatic at the moment? If that's the case then I guess Droxol needs to consider the pros and cons of the other occupational pension transfer options (e.g. leave it in the existing fund, transfer to a buy out bond etc.) and defer transfer until this is possible and justified by analysis of the pros and cons? The other topics linked discuss these issues in more details...
 
Buy out Bond

I think if you transfer to a Buy out Bond you will guarantee never to be able to transfer to a PRSA subsequently. The legislation does not allow for transfers from BOB's to PRSA's.

Alan, as a matter of interest what difficulties are there transfering from Occ pens to PRSA?
 
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