directors pension co. closing down

S

secondtime

Registered User
Messages
31
hello everyone, I need some help. My husband & I set up a ltd. co. 10 yrs ago and a director's pension paid by the co. for him 9 yrs ago. We need to wind up the co. this year. What happens to the pension? Can it be changed to a personal pension? I would expect there to be tax implications but can it be done? or can it be "cashed-in" with the tax due being paid to Revenue? We would rather keep it cos it was taken out when he was 30 and losing those 10years would be very costly.
 
If the Co. closes down (and he leaves employment) he has following options;
- Leave the pension plan paid-up, i.e no more contributions are paid but it remains invested and continue to grow - hopefully.
- Transfer the value of the fund to any pension plan associated with new employment (if appropriate)
- Transfer the value of the fund into a Retirement Bond (a bond in your husband's name but still subject to all the pension rules)

You cannot transfer the fund into a Personal Pension Plan. You cannot "cash it in" either.
 
Thank you Conan. That helps a lot and I also found one of your replies to a similar question on this site. Things are pretty complicated in this situation by the fact that my husband and I have split and he has moved to the uk. Would you know if it's possible to transfer the pension to the uk? It's with Equitable Life so as they operate in both countries maybe that would be possible? what do you think?
 
If he establishes a pension scheme in the UK it is possible to transfer the Irish fund. If he is not a member of an occupational scheme in the UK then the Reirement Bond route may be best.
He should consult with Equitable. However in view of Equitable's problems of late, he will need to ensure that whatever option he takes that there is no "penalty" in switching.
 
You must log in or register to reply here.
Back
Top