Preserved pension

[Frager]

My wife worked for Telecom Eireann from 23 January 1972 to 31 December 1988, i.e. 15 years and 344 days.

She has jsut been informed that she is entitled to a 'preserved pension' from her sixtieth birthday.
Does anyone here know what is meant by a 'preserved pension' and how is the amount calculated.

Thanks.

Frager

 

[ajapale]

From the Irish Pensions Board www.pensionsboard.ie/

Preserved Benefit
Prior to the Pensions Act, 1990, Occupational Pension Schemes were not obliged to preserve benefits on leaving service i.e. the only benefit paid was a refund of member's contributions. The Pensions Act, 1990 requires schemes to provide a minimum Preserved Benefit on leaving service after 1st January 1993 provided 5 years' scheme membership have been completed, of which at least 2 must be completed after 1st January 1991. In the case of a Defined Benefit Scheme, the Preserved Benefit means a deferred pension, deferred retirement gratuity and benefits in the event of death before pension commences. In the case of a Defined Contribution Scheme, Preserved Benefit refers to the accumulation of employer and employee contributions.

ajapale

 

[Frager]

Thanks to ajapale for the reply.
Firstly, apologies for the wrong starting date. It should be 1973, not 1972.
I do not fully understand the answer given.
Also, since my wife finished work in 1988 and does not have 2 years *after* 1991, how does that affect the situation?

 

[ajapale]

Hi Frager,
Im not a pensions expert (every thing I know I have learned here)

The pensions act of 1990 made it obligatory for companies to preserve the pensioners of early leavers.

I might be wrong but I think that Telecom voluntarily preserved the pensions of people with service prior to that date. This would mean that your wife may be entitled to recieve a small pension based on a proportion of her 1988 salary on reaching normal retiring age.

You should ring the telecom pensions people who sent you the first correspondence. Im sure they will explain the pension scheme as it applies in your case.

Hope this helps
ajapale