Hit 50. Thinking of taking the 25% lump sum from old DC Pension

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zisdead1

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Hi

As per the title I have a DC pension from an old employment sitting at 60K. I was hoping to take the the 15k tax free lump sum and reinvest the rest into a suitable product.

Now my problem may be that I also have a DB pension from the same previous employer currently sitting at 22K a year for when I hit 65. There is no way I want to mess with that. So to my question. My previous employer reports the DC and DB pension completely separately on the Irish Life portal. The DC pension was an old perk funded from bonus payments which at the time could be put in tax free (if I recall correctly) and where not really ever tied in to the DB which was my "normal" pension.

Can I take the DC part out and get my 25% tax free lump sum without messing with the totally separate DB part.

Dave.
 
zisdead1 said:
Hi

As per the title I have a DC pension from an old employment sitting at 60K. I was hoping to take the the 15k tax free lump sum and reinvest the rest into a suitable product.

Now my problem may be that I also have a DB pension from the same previous employer currently sitting at 22K a year for when I hit 65. There is no way I want to mess with that. So to my question. My previous employer reports the DC and DB pension completely separately on the Irish Life portal. The DC pension was an old perk funded from bonus payments which at the time could be put in tax free (if I recall correctly) and where not really ever tied in to the DB which was my "normal" pension.

Can I take the DC part out and get my 25% tax free lump sum without messing with the totally separate DB part.

Dave.
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No, revenue require all pensions relating to an employment to be drawn down at the same time.
 
I thought that the DC fund could be transferred to a Personal Retirement/Buy-Out Bond and then accessed separately? Or does that transfer have to be done at the time of leaving the employment and it's too late now?

Edit: oh, even if that's relevant I don't think that the PRB can be drawn until age 60 and @zisdead1 is only 50.
 
Fortune said:
No, revenue require all pensions relating to an employment to be drawn down at the same time.
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I dont think that’s correct. To my knowledge it down to the trustees of the old employment pension and if the db and dc pensions are treated separately. I know colleagues from my previous employment who were in a similar boat and only cashed in their DC pension and took the 25% lump sum and reinvested the rest. They all left their DB pension intact as I was thinking of doing similar.

In our old case the db pension closed many years ago and we all moved to a dc pension afterwards if that makes a difference.
 
kevgaa said:
I dont think that’s correct. To my knowledge it down to the trustees of the old employment pension and if the db and dc pensions are treated separately. I know colleagues from my previous employment who were in a similar boat and only cashed in their DC pension and took the 25% lump sum and reinvested the rest. They all left their DB pension intact as I was thinking of doing similar.

In our old case the db pension closed many years ago and we all moved to a dc pension afterwards if that makes a difference.
Click to expand...
Hi Kevgaa

Maybe I should talk to the trustees then just to get a definite answer. Yes I was one of the lucky first couple of hundred employees over the years who got access to the DB scheme which closed long ago to new entrants even while I was employed there. Now by a stroke of luck the year after I took redundancy everyone still with the company was forced to take a transfer value for there DB pension (if they were in it) and it was now put into the DC scheme . Anyone who had left was not forced into the DC, hence the reason I still have my DB and a separate DC.
 
FYI Talked to the scheme administrators. They are perfect happy to allow me to just move my DC pension into my new employers scheme or invest in a buyout bond. My DB pension will be left as is, they say. Revenue rules were not mentioned at all. Now maybe when I go to try and get the tax free lump sum when I transfer it that may be a problem, but I would have thought if they are allowing me transfer then the right to take the TFLS is legally mine at that point?
 
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