Question
I am currently working for a company whereby you can choose what percentage of your annual salary you would like to contribute towards your pension fund. I am currently not contributing, but the company contributes a portion towards my fund. What happens to the employer contribution when I resign? Will I get a portion of the funds or do they take it away?
Answer
You get the company contribution invested in your fund plus the netinvestment return earned thereon (ie you get your full fund balance - netof any tax that may be due - when you resign). Be aware however that thecompany contribution may be reduced by admin fees, and possibly by riskpremiums paid on your behalf. In other words, not the full amount of thecompany contribution is invested in your fund (just so that you can adjustyour expectations).
