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 Employer Contribution 91 9 Provision of Death in Service Benefits

2 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 172 5 Early Retirement

3 182 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 Ordinary Contribution 273 3 Revenue Maximum Single Contribution 303 4 Standard Fund Threshold (SFT)

4 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 394 9 pension Levy 42 Chapter 5 - Additional Voluntary contributions (AVCs)

5 435 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 465 7 Backdating AVCs 465 8 AVCs and Revenue Maximum

6 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 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)

7 506 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 ?

8 527 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 Transfer to a pension Arrangement Outside the State 577 15 Mixed Benefits

9 587 16 Death before Payment of Preserved Benefits 587 17 Summary of Main Options 597 18 Scheme Discontinuance 597 19 Scheme Reconstruction 607 20 Bulk Transfer Regulations 607 21 Redundancy Payments 61 Chapter 8 - Defined Benefit & Public Sector Schemes 658 1 Introduction 658 2 Typical Structure of a Private Sector Defined Benefit Scheme 658 3 Public Sector Schemes 668 4 Public Sector - Structure of Schemes 668 5 Public Sector - Eligibility for Membership 668 6 Public Sector - Normal Retirement Age

10 668 7 Public Sector - Benefits at Normal Retirement