Pensions going into a 'paid up ' status

Hi
I've had a number of pensions over the years. Most are defined contribution schemes. One was a standard PRSA.
Over the years there would be times when I'd be out of work for a period of time or I'd be changing jobs.
I wouldn't be able to pay into my pension so I'd send a letter to the pension company saying I wish to stop making payments into my pension and state I wish to recommence making monthly payments after a period of time.
I'd then get a letter back saying that the pension is 'paid up' as requested.
But I don't understand why they do this as that was not what I requested.
After a few months I'd go back to the pension company and say I want to restart making payments into the pension scheme.
They'd say you can't do this as its 'paid up'
So can anyone explain why pension companies do this?
Is there any pesnions out there where you can stop and start making monthly payments??

Its a practice thats been there for years, it probably just made it easier for older computer systems to not continue charging monthly fees originally but as companies moved to newer systems, it just sort of carried over in product specs.

Some pensions will allow you to take what they call a contribution holiday whereby you can stop contributing for up to a year before the policy is made paid up.

Another way to avoid making pensions paid up up is lower your contributions to the minimum monthly amount allowable, this can be as low as €20 a month for personal pensions, maybe less for PRSA's depending on the provider.

Hope this helps

Stephen

I don't think it's a systems issue. It sounds to me that the OP has had numerous employments, so I am presuming that he was a member of their pension schemes (rather than having a personal pension).

Because these are Employer sponsored arrangements & are held under trust, you cannot start contributing to them when you join a new employer.

If this is the case, then your pension provider is quite right not to allow you to start contributing to your previous policy, as this may affect the Revenue Approval of the whole scheme.

The employer/trustees of your new scheme cannot make contributions to your previous employers scheme.


PRSAs are more flexible however because they are not governed by trust law, rather they are an individual contract between the contributor & the provider. So you can indeed stop & start premiums when you want.

Ah yes. You cant make payments to an old employers scheme if you are not an employee of the company anymore, hence why funds were made paid up. I was thinking more along the lines of personal pensions.