What can happen
Workplace pensions are usually linked to an employer or pension scheme. Leaving a job usually means active membership of that employer's occupational pension scheme ends, but the treatment of existing pension benefits depends on the rules.
Options can depend on the scheme rules, pension type and individual circumstances.
Key terms
| Term | Plain-English meaning |
|---|---|
| Preserved benefit | A benefit kept in an occupational pension scheme for a member who leaves employment and meets the qualifying conditions. |
| Deferred benefit | Another term often used for a benefit left in a scheme until retirement. |
| Transfer value | The value that may be transferred to another pension arrangement, subject to rules. |
| Scheme booklet | A document explaining the rules of a pension scheme. |
Common possibilities
| Possibility | General explanation |
|---|---|
| Leave benefits in the old scheme | A preserved or deferred benefit may remain in the old scheme where rules allow. |
| Transfer to another arrangement | Benefits may be transferable to another occupational pension scheme, PRSA, buy-out bond or overseas arrangement, subject to rules. |
| Join a new employer scheme | A new employer may have a separate scheme with its own rules. |
| Keep a PRSA or personal pension | If contributions stop to a PRSA or personal pension, benefits may be held until retirement or transferred. |
Documents that may be relevant
Documents commonly relevant when leaving a job include a leaving service statement, pension benefit statement, scheme booklet, provider contact details and any transfer value information.
The Pensions Authority says the information a person is entitled to receive depends on the pension arrangement and the event giving rise to the benefit payment.
How this differs from State Pension contributions
Changing jobs can affect a workplace pension arrangement, but State Pension Contributory rules are based on a person's PRSI contribution record. PRSI records are separate from a private workplace pension fund.
Common misunderstandings
Where to check officially
Pension rules can depend on the pension type, the person's work record, scheme rules and individual circumstances. The official sources below are the places to check current rules.
- The Pensions Authority - Preservation of benefits
- The Pensions Authority - Transfer of benefits
- The Pensions Authority - Individual information on retirement, leaving or death
- Citizens Information - Occupational pensions