If you are leaving employment and were a member of an occupational pension scheme, you may have a number of decisions to make regarding your pension benefits. On leaving service you are entitled to a statement of options regarding what you can and cannot do with your accumulated pension. You will receive this statement from the administrators of your pension scheme but it may be up to 6 months after you leave service.
If you have more than two years service you will not be entitled to a refund of contributions. However you will be entitled to choose between:
- Retaining your benefits with the scheme or
- Transferring your benefits to:
- A new employer’s Occupational Pension Scheme
- A Personal Retirement Bond
- A PRSA
Defined benefit schemes
If you choose to transfer your benefits elsewhere, your pension scheme is obliged to quote you a transfer value.
There are several reasons why it may make more sense to retain an entitlement from the defined benefit pension scheme of a previous employer rather than to transfer out of the scheme.
Note: If you do decide to retain your benefits there is no guarantee that your existing entitlements will be maintained.
This is a very technical area and each individual case is different.
Defined contribution schemes
Instead of the options detailed above, you may be entitled to take early retirement. This may depend on the rules of your scheme, on the consent of the scheme trustees.
Keeping your retirement planning on track
If you are leaving pensionable employment and are becoming either self-employed, or an employee of a company that does not contribute to an Occupational Pension Scheme or a PRSA, you should take care to keep your retirement planning on track. This may require setting up your own pension plan.
If you need assistance with your pension options after leaving employment, call Moore Financial Consultants on 058 86009
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