# Irish Life PRB gimmie the money!



## plankton (11 Feb 2013)

Hello, I have an Irish Life Unit Linked Personal Retirement Bond, Consensus fund value €99,000 as of 30th Nov. 2012. I contacted Irish Life thinking I could take out €45,000 to clear my Visa, company overdraft and loan, total of almost €45,000. I am told by Irish Life that I can take out €11,000 presently tax free and anything above this figure I would be liable for Tax at 41%. The remainder can not be left in the present Consensus fund but would have to be invested in a pension. I was surprised as I thought that when I reached 50 years that I could have access to the funds. At what stage would I be able to withdraw the funds without the Tax penalty? Or if I do withdraw any funds when and how will I benefit? Any advice as my current debts are crippling, and if I do have to reinvest the funds in a pension where should I go?


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## LDFerguson (11 Feb 2013)

A few quick questions: - 


What year was the Irish Life PRB set up?
Were you a shareholding director of the employer related to the pension scheme where this fund originated from?
Is the pension scheme where this money came from still in existence for other employees?


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## plankton (11 Feb 2013)

LDFerguson said:


> A few quick questions: -
> 
> 
> What year was the Irish Life PRB set up?
> ...


Irish Life received amount of €70,000 Oct 2008
I am a director / shareholder of a Limited Company I set up in 1985, The funds received by Irish Life were transferred from an ISME pension which , to the best of my knowledge, ceased to operate
There is nobody else involved with the Limited Company, apart from a nominal director.


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## LDFerguson (12 Feb 2013)

As you were a shareholding director of the employer from where the monies originated, you also have the option to take 25% of the overall fund as a tax-free lump sum now, and defer taking the rest of your benefits until a later stage, through the use of an Approved Minimum Retirement Fund (AMRF). The AMRF can continue to be invested in the Consensus Fund if you wish or can be in any other fund (with Irish Life or another provider) you choose. (I'm assuming that you have no other pension funds.) 

Or you can take 25% now and buy an annuity (fixed lifetime pension) with the other 75%. I take it from your post that you're 50. Because you're young, the annuity rate (amount of pension) you'll get will be small. 

After taking your tax-free lump sum, any income you draw from the balance of the fund will be taxable at your marginal rate. So they will only be taxed at 41% if your income + pension is taxable at 41%. 

Liam D. Ferguson


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## boaber (12 Feb 2013)

Assuming the proceeds of the PRB came from a scheme that relates to your current employment then where early retirement benefits are taken, all links with the business must be severed, including the disposal of all shares in the company.


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