Company paying into a Pension

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chippie1974

Registered User
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Just a quick question, from research I think i know the answer but just checking.

If I have say a self administered pension, I know at my present age I can pay 20% into it. Can the company I work for pay in what ever they like as such. They currently pay 5% into it, but I also want my annual bonus paid directly into my pension. Does this make sense?

Thanks in advance.
 
They can in all probabilty pay much more than the current 5%, but it's subject to a Revenue "Maximum funding test", essentially a complex calculation to ensure your pension will not be overfunded.

A decent Broker/Scheme administrator will be able to give you a maximum % of salary which would be allowed be paid into a pension scheme, taking into account your scheme service, retained benefits etc.
 
The scheme would have to be an Occupational Pension Scheme and not any other type e.g. PRSA, Personal Pension etc.
 
chippie1974 said:
Ah ok, that I think scuppers my plan so. :(
Click to expand...

If it's a PRSA, the combination of your own and the company's contributions shouldn't exceed the 20% mark.

If you're not a million miles over the 20%, you could take the bonus through salary, then make a personal contribution. The bonus will have increased your salary and thus the 20% figure will be calculated off a higher salary figure.
 
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