If you are thinking of moving jobs, one of the things you need to take into consideration is the value of the pension benefits that you have accumulated and whether you can taken them with you. So when do your employers pension contributions become yours and what can you do with them?
Under legislation, when you have been a member of the pension scheme for 2 years, you become entitled to the value of your employers pension contributions as well as your own.
You are not entitled to the value of your employers pension contributions if you leave before the 2 year period. The trustees may waive their right to their entitlement and let you have their contributions too, but that is purely discretionary.
If you move job, you can do one of the following with the benefits:
If you transfer your benefits to a new employer, then the time spent in the previous scheme also transfers to the new scheme e.g. You were a member of a pension scheme for 5 years and transfer the benefits to a new employer. You are entitled to the value of the new employers pension contributions from day 1 as you have completed the 2 year vesting period.
Under employer paid PRSA schemes, you are entitled to the value of your employers pension contributions from day 1. There is no minimum period to satisfy.
The pension benefits should never be the reason why you stay in a job but they should be taken into consideration. If staying in a job for an extra couple of months means you have several thousand euro extra in your pension pot, it should not be discounted.
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