2-Year Vesting of Employer Contributions

Companies can opt to set up and impose a 2-Year Vesting period for Employer Contributions to Occupational Schemes.

This means that if the Employee leaves within 2 years of joining the Occupational Pension Scheme, the Employer is entitled to a refund of all Employer Contributions made.

The individual employee will also be afforded the opportunity to take back his / her Personal Contributions & AVCs made to the plan in that period also. They would be charged the Standard Rate of tax (currently 20%).

It is important for Employers to consider this 2-Year vesting Pension Vesting period when attracting and retaining staff.