PENSIONS: The qualifying period for preserved benefit in occupational pension schemes has been reduced from five to two years for those leaving service after June 1st, 2002. This is of major benefit to people who change employment with less than five years in their pension scheme.

Various sections of the Pensions (Amendment) Act, 2002, have taken effect from the beginning of this month. Of particular interest are those sections dealing with the reduction of the vesting period, preservation of benefits and minimum value of contributory retirement benefit.

Members of pensions schemes leaving service with an entitlement to preserved benefit will now be entitled to preservation of benefit in respect of pre- and post-1991 service. Up to now such benefit was only calculated in respect of post-1991 service. In addition, the revaluation of this preserved benefit has been extended so that the preserved benefit in respect of pre-1991 service will also be revalued each year.

A minimum value of contributory retirement benefit equal to 120 per cent of member's contributions for members of contributory defined-benefit schemes retiring after June 1st, 2002, has also been introduced.