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Personal Retirement Bond Options

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Personal Retirement Bonds (PRBs) also known as Buy Out Bonds are taken out by trustees of company pension schemes when an employee leaves service or when the pension scheme is wound up. They are personal contracts taken out in the employee’s own name and provide retirement benefits in line with the original company pension scheme.

With the money you have built up in your PRB you will be able to choose from either Option A or Option B.

Option A

Retirement Lump Sum

The retirement lump sum available under a Personal Retirement Bond will depend on your circumstances and how long you were 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 employer for a minimum of 20 years when claiming your benefits at normal retirement age. This maximum 1.5 times final earnings must take into account other pension benefits you may have.

Your pension provider will tell you the maximum retirement lump sum you can take based on your salary and service.

Option B

The Rest Of Your Fund

The rest 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 taxes or government levies applicable at the 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 separate 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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