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ess than 2 years service
john_white
Posts: 545 Forumite
Hi all,
The other half had short term fixed contract. She joined the pension scheme but took another job offer a few months later.
As she was in the scheme under 2 years she has been told she has 2 options.
1. Transfer to a new scheme
2. Loose all the contributions.
Now I understand the company contributions cannot be kept unless transferred but I was under the impression she would get her contributions back less tax.
Seems a bit underhand the employer gets to keep her 5% contributions... is this right?
The other half had short term fixed contract. She joined the pension scheme but took another job offer a few months later.
As she was in the scheme under 2 years she has been told she has 2 options.
1. Transfer to a new scheme
2. Loose all the contributions.
Now I understand the company contributions cannot be kept unless transferred but I was under the impression she would get her contributions back less tax.
Seems a bit underhand the employer gets to keep her 5% contributions... is this right?
0
Comments
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john_white wrote: »Now I understand the company contributions cannot be kept unless transferred but I was under the impression she would get her contributions back less tax.
You would normally get a refund of your own contributions minus tax and NI.
Perhaps best check.0 -
Why would you not want to transfer them? Just have them transferred to the new scheme and then you can keep the employers free money that they have given you.Thinking critically since 1996....0
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Seems a bit underhand the employer gets to keep her 5% contributions... is this right?
The employer doesnt keep her contributions. They get back any amount that they paid towards providing potential retirement benefits.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
somethingcorporate wrote: »Why would you not want to transfer them? Just have them transferred to the new scheme and then you can keep the employers free money that they have given you.
Because there is a 3 month deadline to transfer and a 6 month wait to join the new scheme.
Also, pensions are complicated, not all can simply be transferred.
So thats why my question was about the individuals contributions, which others have answered.
It could of course be transferred to a private plan, then possibly have that transferred to the new scheme, but the costs could be prohibitive.0
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