Navigating SFT changes

[nest egg]

Access to OPS - From 50 onwards where employment has terminated and all links with the employer linked to the scheme are severed, otherwise scheme NRA (lowest possible 60)

Access to PRSA - Between 50 – 60 where employment has ended and member is no longer economically active (retired from all employments). Age 60 otherwise.

I want to make sure I've understood this correctly.

Scenario 1: You 'retire' from a position with an OPS at 50. You want to continue to work elsewhere, say on a part-time basis, topping up your income from your OPS/ARF. No problem.

Scenario 2: Same as above, but you had a PRSA instead. In this case, you can't work, is that correct?

 

[GSheehy]

No, there's no ban on a person ever working again.

Between 50 - 60 where employment has ended and the member is no longer economically active (retired from all employments) at the time of taking the benefits.

You might have a situation where an OPS was being wound up and the value was transferred to a PRSA without the need for a Certificate of Benefits Comparison. At some stage in the future you might want to mature that early, but might be still economically active, so you might be snookered.

That's my understanding of the difference but I believe interpretations vary between product providers on that rule in terms of what they request as proof of not being 'economically active' at a maturity prior to 60.



Gerard

www.execution-only.ie