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Additional Voluntary Contributions

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You may have paid AVCs into your main scheme, a separate AVC plan, or into your PRSA. The AVC fund will help to make up the shortfall between the maximum benefits you are allowed under your main scheme and what your main scheme actually provides. AVC benefits must be claimed at the same time you are claiming benefits from the main company pension scheme.

Retirement Lump Sum

The amount you can take as a retirement lump sum under your AVC will depend on the rules of your company pension plan. This will depend on your circumstances and how long you have been working for the company. If you took a retirement lump sum based on your salary and service the maximum retirement lump sum allowed is 1.5 times (150%) your final earnings. The trustees of your company pension scheme will tell you the maximum retirement lump sum you can take based on your salary and service. For example, if you are allowed 150% of your final earnings as a retirement lump sum and your company pension gives you 100%, you can use your AVC to make up the other 50%. If you took 25% of your company pension plan as a retirement lump sum then you can also take 25% of your AVC funds as a retirement lump sum.

The Rest of Your Fund

Your options with the rest of your AVC fund depend on whether you contributed your AVCs to your main scheme, to a separate AVC or to a PRSA AVC plan.

Option 1

If you contributed AVCs into your main scheme or a separate AVC plan

You will have a different set of options depending on whether you have a guaranteed pension income for life of €12,700 a year.

Will you have a guaranteed pension income for life of €12,700 a year when you retire?

NO”

YES”

Buy a pension for life

Buy a pension for life

Or

Or

Invest the first €63,500 in an AMRF or use to buy a pension for life and invest the rest in an ARF, taking withdrawals as you want

Invest in an ARF
(taking withdrawals as you want)

Or

Or

Invest the first €63,500 in an AMRF or use to buy a pension for life and take the rest as a taxable sum

Take as a taxable cash sum

Option 2

If you contributed AVCs into a PRSA plan

You will have a different set of options depending on whether you have a guaranteed pension income for life of €12,700 a year.

Will you have a guaranteed pension income for life of €12,700 a year when you retire?

NO”

YES”

Buy a pension for life

Buy a pension for life

Or

Or

Leave up to €63,500 in your vested PRSA as a restricted fund or buy an annuity with that amount. You can then leave the rest of your fund in the vested PRSA & take withdrawals as you want until age 75.

Leave the fund in your vested PRSA as an ARF (taking withdrawals as you want) until age 75.

Or

Or

Invest the first €63,500 in an AMRF or buy an annuity with that amount. You can then invest the rest in a separate ARF & take withdrawals as you want.

Invest in an ARF
(taking withdrawals as you want)

Or

Or

Leave €63,500 in your vested PRSA as a restricted fund, invest that amount in an AMRF or use buy an annuity. You can then take the rest of your fund as taxable cash.

Take the rest as a taxable cash sum

You will have to pay income tax at your highest rate, USC, PRSI (if applicable) and any taxes or government levies on any pension income you receive or withdrawals from a vested PRSA, ARF or AMRF.

You will have no access to your vested PRSA after age 75. Your pension provider will be required to deduct income tax and USC from your vested PRSA as if you had taken a minimum withdrawal, however no further payments can be made to you.

These limits may change in the future.

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