New job, begining pension

[slimjim]

Good evening ladies/gentlemen, I will present you with my situation, and the my question.

I'm beginning a new job next week( I am 25), and included is a company pension, on a defined contribution basis.

My company will contribute 7% of my pensionable salary, while I must contribute 3% of my pensionable salary.

The pension funds are managed by Irish Life Investment Managers(ILIM) and Montgomery Oppenheim(MO).

Available funds are:
ILIM Cash fund
ILIM Fixed Interest fund
ILIM Consensus fund
ILIM Global Access
MO Managed fund
MO Global Equity Fund

Q1)Is this a good deal (7% employer contribution)?
Q2)What are the fees for the above funds?
Q3)How is the performance of the above fund(the equity based funds)?
Q4)Is there a way I can get my employer to pay into a private pension of my choice(such as a Quinn-Direct pension)?

Thank you for your time.

 

[ClubMan]

Q1)Is this a good deal (7% employer contribution)?

7% employer for 3% employee isn't bad in my experience.

Q2)What are the fees for the above funds?

Surely your employer or pension consultant/provider can give you this info!?

Q3)How is the performance of the above fund(the equity based funds)?

Bear in mind that past performance is no guide to future returns. You can probably get this info online.

Q4)Is there a way I can get my employer to pay into a private pension of my choice(such as a Quinn-Direct pension)?

That's a matter for negotiation between you and your employer.

 

[LDFerguson]

Further to Clubman's reply above, in response to Question 2, fees and charges will vary from one pension scheme to the next, depending on how it has been set up. So you should ask the pension consultant to detail them for you in relation to your specific scheme. If you don't understand any of the jargon, ask them to explain it to you until you do.

 

[ClubMan]

And check out www.pensionsboard.ie and www.itsyourmoney.ie for more background info on pensions.

 

[aidan119]

To consider if 7% is good you should check what the definition of "pensionable salary" is. It will be in your handbook.
Some companies deduct the state pension or a multiple of it e.g. 1.5 or 2 times when defining pensionable salary, even for defined contribution schemes.
It's a carryover from DB scheme structures and not uncommon when a company closes a DB scheme and offers a DC scheme to new entrants.

If your in a job where bonuses/commissions form part of your salary then these are normally excluded too.