What happens to your pension?

Information

Your pension will probably be affected if you become unemployed or reduce your working hours.

The way in which it will be affected depends on:

• Whether it is an occupational pension scheme provided by your employer or a Personal Retirement Savings Account (PRSA)
• How long you have been contributing to the scheme
• Conditions attached to that particular scheme

Rules

Occupational pension schemes

Each pension scheme has its own set of rules. Occupational pension schemes and PRSAs are regulated by the Pensions Board. Members of schemes have certain rights in respect of receiving information in relation to their pension scheme.

There are specific rules about what happens if you leave the pension scheme for whatever reason, for example, if you lose your job. Your benefits from the pension scheme may be preserved within the scheme or transferred to another scheme. Legislation requires that when a member leaves a scheme that they must be provided with a Leaving Service Options letter within 2 months of their exit from the scheme. This letter should detail any options relating to the members’ benefits.

A preserved benefit means that you get a pension when you reach the scheme's normal retirement age.

If you have less than 2 years contributions to the scheme, you can get a refund of your own contributions (but not any contributions made by your employer). This refund will be taxed, as you received tax relief when you made the contribution.

Before you leave your employment, you should talk to the person in the company who has responsibilty for administering the pension scheme, as each scheme has its own rules.

If the pension scheme is being wound up, because, for example, the company is going into liquidation, you should clarify the status of your pension contributions as a matter of urgency.

Personal Retirement Savings Accounts (PRSAs)

Your PRSA is a contract between you and a PRSA provider in the form of an investment account. PRSAs allow you to change employment and continue to use the same PRSA.

You can stop or start a PRSA when you choose, without charges, by contacting your PRSA provider.

Note, that apart from the circumstances relating to retirement, a PRSA provider may not pay out PRSA assets except if you do not pay contributions for two years or more and the value of your PRSA fund is €650 or less, your provider can terminate your PRSA and give you a refund of the value of your account. Your provider must give you three month's written notice before closing your PRSA.

How to apply

You should contact your pension provider as soon as you lose your job, whichever type of pension you have.

Where to apply

For further information, see the Pension Board’s booklet What happens to my pension when I leave (pdf), PRSAs – a consumer guide (pdf) and Pension Board Funding and Restructuring (pdf).

Pensions Board
Verschoyle House
28-30 Lower Mount Street
Dublin 2
Tel: (01) 613 1900
Locall: 1890 656 565
Fax: (01) 631 8602
Homepage: http://www.pensionsboard.ie/
Email: info@pensionsboard.ie