Hi,
I am a member of a defined contrib. pension and we have presentations from the pension provider roughly once a year and they generally say that, upon retirement, you are entitled to a tax-free lumpsum of 1.5 x (Your Final Salary). Digging deeper it seems that in fact the entitlement is to (3xYearsOfService/80)x(Final Salary), so if you served a full 40 years this would simplify to the 1.5xFinal Salary that is generally quoted. What I would like to know is:
Who specifies this entitlement; is it part of the terms of the pension scheme or is it a rule laid down by revenue ? Does anyone know ? I would like to see the precise detail of the entitlement but I am not sure who I should be chasing, revenue or the pension providers ?
Thanks,
Usjes.
I am a member of a defined contrib. pension and we have presentations from the pension provider roughly once a year and they generally say that, upon retirement, you are entitled to a tax-free lumpsum of 1.5 x (Your Final Salary). Digging deeper it seems that in fact the entitlement is to (3xYearsOfService/80)x(Final Salary), so if you served a full 40 years this would simplify to the 1.5xFinal Salary that is generally quoted. What I would like to know is:
Who specifies this entitlement; is it part of the terms of the pension scheme or is it a rule laid down by revenue ? Does anyone know ? I would like to see the precise detail of the entitlement but I am not sure who I should be chasing, revenue or the pension providers ?
Thanks,
Usjes.