gnf_ireland
Registered User
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Hi all,
I would just like something confirmed in the case of a Group Pension Scheme (Employer defined contribution). I am assuming this would be categorised as an occupational pension.
Lets say Person A makes 40k and are 45. They are entitled to put 25% of their income into a pension and receive tax relief on it - so 10k in contributions.
Lets say their employer pays in 10% - so 4k - into the scheme in a given year
Is the employee entitled to put in 15% (6k) or 25% (10k) in personal contributions ??
So in effect, is the employer contribution deducted from the available employee contributions?
My understanding of it is :
- for a PRSA the employer contribution is deducted from the employee contribution
- for an occupational pension, the employer contribution is not deducted but subject to a complex formula around max pension entitlements - which would not apply in this case as pension to date is relatively low.
I would just like something confirmed in the case of a Group Pension Scheme (Employer defined contribution). I am assuming this would be categorised as an occupational pension.
Lets say Person A makes 40k and are 45. They are entitled to put 25% of their income into a pension and receive tax relief on it - so 10k in contributions.
Lets say their employer pays in 10% - so 4k - into the scheme in a given year
Is the employee entitled to put in 15% (6k) or 25% (10k) in personal contributions ??
So in effect, is the employer contribution deducted from the available employee contributions?
My understanding of it is :
- for a PRSA the employer contribution is deducted from the employee contribution
- for an occupational pension, the employer contribution is not deducted but subject to a complex formula around max pension entitlements - which would not apply in this case as pension to date is relatively low.