New Occup. Pension - halt Personal Pension?

  • Thread starter The Grinder
  • Start date

The Grinder

I started a job in the Health board on Feb 2002 with a Temporary Part-Time category of employment. I understood/assumed then that because of my category I would not be entitle to the Health board superannuation pension. So I continued to pay into my already established Personal Pension. I contributed up to the maximum 20% of net relevant earnings allowed in order to claim tax relief.

Recently I got notice from my employers in the Health board saying that I've to join the superannuation pension from the start date of my employment in 2002. I will have to make back contributions for this and will contribute to it going forward.

Eagle Star have advised that a person who is paying into an occupational pension scheme can continue to pay into a personal pension but cannot claim tax relief on contributions to a personal pension.

My question is - should I make my policy with Eagle Star 'paid up' if I can't avail of tax relief which was the reason I started it in the first place. Also, I have got tax relief on this personal pension since 2002. Now that I have to pay back contributions and will get the benefits of the occupational pension from 2002, will the tax man be looking from a repayment of this relief gained up to now on the personal pension payments.


Say Nothing

The Grinder,

Yes make the ES pension paid up. You can't do both.

And then just say nothing about the back-dating issue. These things are not policed and the chances of anyone ever noticing the issue is remote in the extreme.



Hi Grinder,

I got notice from my employers in the Health board saying that I've to join the superannuation pension
Are you sure about this? I think it is very unlikely that temporary workers can be forced into a superannualtion scheme. These defined benefit schemes discriminate against short stay temporary workers.

Do you intend staying with the Health Board until you reach retirement age? If so, take the opportunity to join the superannuation scheme. If you have to "buy service" back to 2002 you should be able to do this in the current year.

If you dont intend staying with the Health Board in the short or medium term then dont join the superannualtion sheme and keep your ES pension. Is your personal pension a PRSA? If it is I think the employer is obliged to facilitate you with deductions from your wages.

More and more employees (particularily IT professionals) move into and out of the public service several times in their career. I dont think it is right for them to be penalised with respect to their penison in this way.


The Grinder


Thanks guys. Yes, I am Temporary and intend to stay until retirement. They may be having i/v's soon for permanent positions.


Pension "paid up"

Hi Bernie,

I think the law was changed recently so that you can contribute simultaneously to an occupational scheme and a personal pension. The catch is that you won't get tax relief on the personal pension.