Pensions Technical Manual - Best Advice

1 Sub-TitlePensions Technical Manualtaking care of 1 Introduction 2 Chapter 1 - Occupational pension Scheme Design 31 1 Introduction 31 2 Provision of Benefits 31 3 Main Types of Occupational pension Schemes 41 4 Revenue Approval 61 5 Trust Deed 61 6 Scheme Rules

2 71 7 Membership 71 8 Employer Contribution 91 9 Provision of Death in Service Benefits 91 10 Pensions Board 91 11 Registered Administrators (RA)

3 10 Chapter 2 - Revenue Maximum Benefits Allowed 112 1 Introduction 112 2 Terms Used 122 3 Maximum pension at NRA 142 4 Maximum Retirement Lump Sum at NRA 172 5 early Retirement 182 6 Ill Health early Retirement 202 7 Serious Ill Health 202 8 Late Retirement

4 202 9 Death in Service 222 10 Death in Retirement 232 11 Cap on Tax Relieved pension Fund 242 12 Cap on Retirement Lump Sum 25 Chapter 3 - Maximum Contribution Rates 273 1 Introduction 273 2 Calculation of Revenue Maximum Ordinary Contribution 273 3 Revenue Maximum Single Contribution 303 4 Standard Fund Threshold (SFT)

5 31 ContentsChapter 4 - Tax Treatment of Contributions and Benefits 324 1 Introduction 324 2 Regular and Single Contributions 324 3 Employer Regular Contributions 324 4 Employer Single Contributions 334 5 Corporation Tax - Loss Relief 354 6 Employee Regular Contribution 364 7 Employee Single Contribution 384 8 Taxation of Benefits

6 394 9 pension Levy 42 Chapter 5 - Additional Voluntary Contributions (AVCs) 435 1 Introduction 435 2 Who can make AVCs? 435 3 Scope for AVCs 435 4 Paying AVCs 445 5 Tax Relief on AVCs 455 6 Claiming Tax Relief on AVCs

7 465 7 Backdating AVCs 465 8 AVCs and Revenue Maximum Benefits 465 9 Drawing AVC Benefits 47 Chapter 6 - 20% Directors 486 1 Introduction 486 2 20% Director Definition 486 3 Main Restrictions for 20% Directors 486 4 Final Salary for 20% Directors 496 5 Normal Retirement for 20% Directors

8 506 6 Late Retirement for 20% Directors 506 7 early Retirement for 20% Directors 506 8 Serious Ill Health for 20% Directors (Death s Door Concession) 506 9 Death in Service for 20% Directors 506 10 Refund of Contributions for 20% Directors 506 11 20% Director of an Investment Company 516 12 Continuation of Service after Company Reorganisation 51 ContentsChapter 7 - early Leavers and Scheme

9 Discontinuance 527 1 Introduction 527 2 Pensions Act - Statutory Preserv