What happens to the employer contribution when I resign?

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 net investment return earned thereon (ie you get your full fund balance - net of any tax that may be due - when you resign). Be aware however that the company contribution may be reduced by admin fees, and possibly by risk premiums paid on your behalf. In other words, not the full amount of the company contribution is invested in your fund (just so that you can adjust your expectations).