How To Consolidate Your Pensions

It can become an administrative headache, especially if you have a number of small pensions. It can be easier to just have them under the one policy.

This article is going to look at what type of pensions you can use to consolidate your pensions. Next week we will look at whether you should or not.

Transfer them to an occupational pension scheme

If you are a member of an occupational pension scheme, this is the easiest way to consolidate all of your pensions. All of your old company pensions can be transferred into your current occupational pension. If you have a Buy Out Bond/ Personal Retirement Bond, you can transfer these into the scheme too and you can transfer PRSAs into the scheme too. The only pension you can’t transfer directly into an occupational pension scheme is a personal pension. But you can transfer a personal pension to a PRSA and PRSAs can be transferred to an occupational pension scheme.

Transfer them to a PRSA

If you are not a member of an occupational pension scheme, your only option is to transfer your benefits to a PRSA. But even this isn’t straightforward.

If you are transferring benefits from an occupational pension to a PRSA, you need a comparison of benefits certificate to be completed. This is a comparison of the final value you may get under each pension type based on the charges and funds under the fund. It is carried out by an actuary and costs €1,500 to have it done. There are exceptions to having this certificate completed:

Transfer value is less than €10,000
The transferring scheme is being wound up. If you are in a one member scheme, this will be done. Otherwise, it will only be if the whole scheme is being wound up and everyone has to transfer their benefits out.

If you have pension benefits in a Buy Out Bond/ Personal Retirement Bond, you cannot transfer this pension to a PRSA, the rules don’t allow it. Personal pensions can be transferred to a PRSA.

Transfer process

When you leave an occupational pension scheme, you get your “leaving service options” form, which sets out the different options available to you. You tick the box beside the option you want and fill in any other details asked on the form and send it back to the scheme administrator.

If you are transferring the benefits to an occupational pension scheme, the scheme administrator has to send the transferring scheme a list of information on the receiving scheme.

If it is going to a PRSA, you have to set up the PRSA and then have the comparison of benefits certificate completed. The cert has to be submitted to both the transferring scheme and the receiving life company. The life company will send a “Willing and Able” letter saying that they can receive the benefits.