When leaving a pensionable job, an employee can choose to avail of the benefits accrued within that pension scheme or to transfer them. If they choose the latter option, they can either transfer the payment to another scheme or to an approved insurance policy or contract.

The transfer payment will be the equivalent of the current cash value of the preserved benefit (see second story) to which the employee would otherwise have been entitled.

Under the 2002 legislation, the Minister for Social, Community and Family Affairs can prescribe that this calculation would be made in accordance with guidance issued by the Irish Society of Actuaries.

An employee can apply for a transfer payment within two years of terminating employment, or longer if the scheme permits this. They must, however, make such an application before the preserved benefit becomes payable.

The scheme must make arrangements to make the transfer payment within three months of the application being received.

If the payment is being made to a new pension scheme, the trustees of that scheme must provide benefits equal to the payment amount.