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 71 7 Membership 71 8

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

3 172 5 Early Retirement 182 6 Ill Health Early Retirement 202 7 Serious Ill Health 202 8 Late Retirement 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

4 Ordinary Contribution 273 3 Revenue Maximum Single Contribution 303 4 Standard Fund Threshold (SFT) 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

5 334 5 Corporation Tax - Loss Relief 354 6 Employee Regular Contribution 364 7 Employee Single Contribution 384 8 Taxation of Benefits 394 9 pension Levy 42 Chapter 5 - Additional Voluntary Contributions (AVCs) 435 1 Introduction 435 2 Who can make AVCs?

6 435 3 Scope for AVCs 435 4 Paying AVCs 445 5 Tax Relief on AVCs 455 6 Claiming Tax Relief on AVCs 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

7 486 3 Main Restrictions for 20% Directors 486 4 Final Salary for 20% Directors 496 5 Normal Retirement for 20% Directors 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)

8 506 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 Discontinuance 527 1 Introduction 527 2 Pensions Act - Statutory Preserved Benefits 527 3 What is a preserved benefit ?

9 527 4 Qualifying for Preserved Benefits 537 5 Calculating Minimum Preserved Benefits 537 6 Scheme Rules - Vested Rights 547 7 Options for Early Leavers 547 8 Refund of Contributions 547 9 Paid Up Benefits 557 10 Transfer to New Employer s Scheme 567 11 Transfer to a Personal Retirement Bond 567 12 Transfer to a PRSA 567 13 Transfer to an Unfunded Scheme 577 14

10 Transfer to a pension Arrangement Outside the State 577 15 Mixed Benefits