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B-Teacher
Joined: 09 Nov 2006
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 Posted: Sat Dec 09, 2006 1:36 pm Post subject: Pension Plan question |
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Rhetorical question: If you were only planning to stay here for a year or two and your employer offered to waive your pension plan contributions, would you do it? Basically, they would agree not to deduct anything from your pay stub (and not make any contributions on your behalf).
I've been reading a few posts about pension plans, and I've been trying to figure out what the advantages of contributing to a National Pension Plan in a country where you don't intend to stay for the long term are. Aside from it probably being illegal, wouldn't it be an advantage to just keep the money you earn rather than paying the government and applying for a refund when you leave? This is assuming that you�re a Canadian, American or U.K citizen of course. |
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Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
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| Posted: Sat Dec 09, 2006 3:49 pm Post subject: |
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| You are not only trading off getting your money back later in return for having it now...you are also trading off your employer's half of the contribution. It's very generous of you, Santa. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Sat Dec 09, 2006 3:49 pm Post subject: Re: Pension Plan question |
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| B-Teacher wrote: |
Rhetorical question: If you were only planning to stay here for a year or two and your employer offered to waive your pension plan contributions, would you do it? Basically, they would agree not to deduct anything from your pay stub (and not make any contributions on your behalf).
I've been reading a few posts about pension plans, and I've been trying to figure out what the advantages of contributing to a National Pension Plan in a country where you don't intend to stay for the long term are. Aside from it probably being illegal, wouldn't it be an advantage to just keep the money you earn rather than paying the government and applying for a refund when you leave? This is assuming that you�re a Canadian, American or U.K citizen of course. |
The advantage is that you get the employers contributions as well as your own returned when you leave. On a salary of 2 mil that makes an extra mil in your pocket (his contributions) when you leave. I can put up with a bit of a hassle for an extra mil per year (net benefit). |
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B-Teacher
Joined: 09 Nov 2006
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| Posted: Sat Dec 09, 2006 5:50 pm Post subject: |
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Ah... makes sense. I guess waiving pension contributions is only helpful when your Australian, NZ, South African, etc (unable to claim it).
Cheers |
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