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Company Pension Options

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The options you have for your pension fund from a company pension will depend on whether you have a defined contribution or defined benefit company pension scheme.

Defined Contribution Company Pension

Almost everyone in a defined contribution company pension scheme will have the option to choose from either Option A or Option B (explained in this section). The trustees of your company pension scheme will tell you what options are available to you.

Defined Benefit Company Pension Scheme

The options available will depend on the rules of your company pension scheme. Typically you must take your retirement benefits under Option A. The trustees of your company pension scheme will tell you what options are available to you.

Retirement Lump Sum

The retirement lump sum available under a company pension plan will depend on your circumstances and how long you have been working for the company. The maximum retirement lump sum allowed is 1.5 times (150%) your final earnings. To be able to take the maximum allowed, you will need to have worked with your current employer for between 20 and 40 years depending on your circumstances and any other pension benefits you may have. The trustees of your company pension scheme will tell you the maximum retirement lump sum you can take based on your salary and service.

The Rest of Your Fund

The balance of your pension must be used to buy a pension for life. You will have to pay income tax at your highest rate and USC and any other taxes or government levies applicable at that time on any pension income you receive. If you paid AVCs into your company pension scheme or into a separate AVC scheme or PRSA AVC you will have further options with your AVC funds, please see section 6.

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

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.

If you paid AVCs into your company pension scheme or into a seperate AVC scheme or PRSA AVC you will have further options with your AVC funds, please see section 6.

These limits may change in the future.

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