Continuation of pension plan by a new employer
Submitted by Moshe on Thu, 29/04/2010 – 15:13
An employee who starts a new job and has an active pension plan from a previous employer, can demand immediate deductions from his payroll from his start date, along with employer’s contribution according to the law.
In order to procure this the employee needs to present the new employer with a detailed printout of the existing accounts’ deposits.
This is highly recommended, rather than waiting several months until the employer starts deducting towards a new plan.This is highly recommended, rather than waiting several months until the employer starts deducting towards a new plan.
However, some employers will only do this after you have tenure of three months in order to ensure that employees stay on. If the tax year ends prior to your three month tenure date, it is required for the employer to forgo the 3 month waiting period because the pension funds do not allow retroactive deposits for previous years due to new regulations.
