Defined Benefit Scheme and AVC's with IRISH LIFE how can i maximize my financial returns ?

H

HynesMA

Registered User
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Hi there, i am in the above Private Company scheme for several years , my AVC'S are in a Defined Contribution Scheme of which i have maximized for some years now.

Is there an option or options to opt out of the main scheme if the Trustees of the Scheme offer an attractive Transfer Value before reaching 65 ?? ….. i have less than 2 years to go !

How can i have a smooth transition into retirement while avoiding revenue taxation and maximizing returns over future years.

I have other incomes after 65 and i have savings in Banks so not totally depending on income Irish Life's after 65 / 66 retirement ....
 
Opt out of the scheme while remaining with the company?

If you leave the employer you will receive leaving service options, one of which would be a transfer value.

Gerard

www.prsa.ie
 
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HynesMA said:
How can i have a smooth transition
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What exactly do you mean by this?
HynesMA said:
into retirement while avoiding revenue taxation and maximizing returns over future years.
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Well the usual options at pension "maturity" are to take a tax free lump sum and then roll the balance into an ARF or to buy an annuity. What other than this did you envisage? You're not tied to Irish Life for either option in case that was a concern.
 
GSheehy said:
Opt out of the scheme while remaining with the company?

If you leave the employer you will receive leaving service options, one of which would be a transfer value.

Gerard

www.prsa.ie
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Thanks for your reply Gerard, so if i may well leave the company shortly before reaching the age of 65 they have to offer me a transfer value or other options to exit the scheme.
Whereas if i remain with the company until i reach 65 the usual option is to take a lump sum and then roll the balance into an ARF or to buy an annuity or other options.
Looking at that is may be an advantage to leave the company and the pension scheme before just before 65 !!

Kind Regards,
Michael ........
 
The main scheme is DB so your salary and service will dictate the tax-free-cash/annuity pension payments you will get.

The AVCs are DC so when you've matured the main scheme and know exactly what the benefits are, the AVC provider will take those, do a calculation to see if you're entitled to any further tax-free-cash and then you decide if you want to put the balance in an ARF or annuity.

There is no obligation on the Trustees of the main scheme to furnish you with a transfer value on leaving service. You could as them if they would do that for you. They would have to consider whether the transfer is good/bad for all the members in the scheme. In general, trustees are happy enough to provide a transfer value.

You'd have to get someone else to then calculate if the transfer value, 2 years before normal retirememt date (NRD) , is to your advantage as opposed to waiting for the deferred DB pension at NRD, and take advice as to whether (all things considered) it's the right thing to do. NB: It's more lucrative for an advisor to sway you towards a transfer so you could get a second opinon from the posters here if you go that route and get some figures to work with.



Gerard

www.prsa.ie
 
GSheehy said:
There is no obligation on the Trustees of the main scheme to furnish you with a transfer value on leaving service. You could as them if they would do that for you. They would have to consider whether the transfer is good/bad for all the members in the scheme. In general, trustees are happy enough to provide a transfer value.





Gerard

www.prsa.ie
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The right to a transfer value is statutory
 
Oisin19 said:
The right to a transfer value is statutory
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That's gas.

And there was me checking with the pensions technical services department of a pension provider before I replied, because I wasn't sure what the right answer was on DB Schemes, and they said there wasn't an obligation.

Do you know if there's an obligation on Trustees of DB Schemes to provide a transfer value at NRD?


Gerard

www.prsa.ie
 
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GSheehy said:
That's gas.

And there was me checking with the pensions technical services department of a pension provider before I replied, because I wasn't sure what the right answer was on DB Schemes, and they said there wasn't an obligation.

Do you know if there's an obligation on Trustees of DB Schemes to provide a transfer value at NRD?


Gerard

www.prsa.ie
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Agree . Never heard of a member of a DB scheme having "a right to a transfer value". Some schemes may offer a TV to get some liability of the scheme accounts, but the member has no right to such.
 
I dunno why I bother posting on here to be honest. I believe Section 34 of the pensions act is where you need to look
 
Fortune said:
That's for preserved benefits. The OP is a current member.
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Just leave the pension? Best thing to do is to talk to the trustees on this. They are generally very good and will try and do the best for the member.
 
I'm a bit shocked by some of the comments here. A member of a funded Occupational Pension Scheme has a statutory right to a transfer value for the 2 years subsequent to leaving that employment. That is precisely the situation being considered by the OP.
 
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Unfortunately a large majority pension “experts” have never read or heard of the pensions act/tca/revenue guides. All their knowledge comes from 1 multiple choice qfa exam and whatever broker consultant pays them the most commission. ( this comment is not pointed at anyone in particular here. It’s a general observation of the industry).

The knowledge gap in the industry is unreal and it stems from the fact that no one reads the rules. It’s commission led and that’s all that matters.

Then there is the investment advice. Tick a few boxes on a risk questionnaire (which has a bias to the mean), match it up to an esma rating and off you go.

As a wise man said to me many moons ago never take advice from someone that isn’t an accountant, tax adviser or solicitor. ( you can probably add cfa and actuary to that list now) It’s probably a bit unfair to the genuine good financial advisers but your odds are more in your favor going with the professionals.

Anyway rant over :)
 
I’m looking for some quality pension advice.

Who are “the professionals” you refer to above?

Thanks.
 
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