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Pension splitting


 “Voluntary pension splitting scheme” has been introduced for the benefit of parents who are in receipt of childcare benefit from 2005 on. That parent who is not primarily involved in caring for the child/children and is in employment can agree to transfer 50% of his/her partial pension entitlement for the first four years after the birth of the child (or for the first five years after the birth of more than one child) to the pension account of the parent who stays at home. The transferred entitlement may not exceed the maximum contributory basis of this parent.
Partial entitlements that have not been acquired during periods of paid employment (e.g. during periods of unemployment) cannot be transferred.
Applications for transfer of pension entitlements must be submitted before the child in question has reached the age of 7 years.