Pension question

gary_the_great

Im moving to the Uk for 1 year to work. Im 23 and thus far have not set up a pension.

When i move to the UK i will be working in a council job and I beleive they offer a good pension. But i will only be in the UK for a year, so if I pay pension contributions, will I be able to transfer my pension to another private pension when I move back home, or what is the situation here?

dunstonh

I dont say this often but its probably not worth it. With a period of less than 2 years, you would get your money back with a penalty.

Only if you may possibly go past the 1 year then it may be worth considering. However, at 1 year, it isnt worth the hassle and there would be no benefit to you.

CAE

If contributing to the Local Government Pension Scheme as you are working for the council, you have a right to opt out and have a refund of contributions within three months of joining. If you do not opt out within the first three months you will not be entitled to a refund, and would have an entitlement to a deferred benefit on leaving. If you are on a contract you will be put into the pension scheme automatically, so it is important to opt out immediately if that is what you want.

Pension benefits can be transferred overseas, but it would depend on where you wanted to transfer the pension to. There are a number of criteria which need to be met before an overseas transfer takes place.

gary_the_great

CAE wrote: »

If contributing to the Local Government Pension Scheme as you are working for the council, you have a right to opt out and have a refund of contributions within three months of joining. If you do not opt out within the first three months you will not be entitled to a refund, and would have an entitlement to a deferred benefit on leaving. If you are on a contract you will be put into the pension scheme automatically, so it is important to opt out immediately if that is what you want.

Pension benefits can be transferred overseas, but it would depend on where you wanted to transfer the pension to. There are a number of criteria which need to be met before an overseas transfer takes place.

Cheers thanks for the answers. I'll be opting out of the pension so.
A mate of mine is there now and paying his pension9 months, but will be moving back to Ireland around xmas this year. Will he loose all his contributions otr what sort of penalty is he likely to face?

CAE

If Local Government Pension Scheme, then he would be entitled to preserved benefits, which is a pension and lump sum payable on retirement. These benefits would be index linked.

Alternatively he could transfer the benefits to a new pension scheme.

A refund of contributions is not available.