Personal Pensions I A retirement annuity contract is effectively a personal pension. It is the traditional form of pension available to individuals, who are not members of an occupational pension scheme. It is effectively an investment policy. The retirement annuity contract is a policy issued by an insurance company. It is not possible to invest directly. It may be taken […]
Personal Pensions Conditions A personal pension contract / retirement annuity contract must be effected by an individual. It is principally for the benefit of the individual who enters the contract. A personal pension contract must be taken out with a life insurance company. It may be effected with any insurance company authorised in the European Union. There are two types […]
Pensions and Deferred Taxed Income Personal pension schemes (retirement annuity accounts) and PRSAs enjoy significant tax advantages. Contributions to these pension schemes / vehicles are allowed as a deduction for income tax purposes, thereby affording relief at the holder’s top rate of tax. These reliefs have been curtailed, but largely remain in place. The funds / policies themselves also benefit […]
Personal Retirement Savings Accounts PRSAs were introduced in 2002 as a flexible, portable type of pension provision. Transfers may be made to and from other types of pension schemes. The PRSA may be carried by a person through multiple employments and self-employment, during his working life. An individual and / or his employer may contribute to a PRSA. Employers must […]
Providing PRSA Disclosure Certificate The Pensions Act and regulations under it, require that PRSA providers to ensure that holders receive certain information from time to time. The provider must furnished the PRSA holder with half yearly investment report of all funds in which the PRSA is invested. A statement of account must be provided, half yearly showing total contributions between […]
Approved Retirement Funds Approved retirement funds were introduced in 1999. They are an entity into which a pension fund may be paid on retirement or at the relevant normal retirement age. The holder is owner of the ARF funds and has a discretion as to when to drawdown funds. The ARF must be held with a qualifying fund manager. A […]
Pension Fund Income Exempt Occupational pensions schemes which are registered with the Revenue (and Pensions Authority) are referred to as exempt approved schemes. Contributions to those scheme may claim and receive tax relief. The general position is that all income of the scheme accumulates tax-free. Tax is paid on benefits received from the scheme, except to the extent that tax-free […]