Pension ocntribution from Bonus deemed Employer Contribution

[Battapieman]

Hi,
My multinational employer has stated on my recent bonus allocation form that any pension contribution from my semi-annual bonus payment is deemed an Employer Contribution.

Does anyone know if this is legitimate?
Is it the same across other multinationals out there?

thx,
BP

 

[mathepac]

Any pension payment deducted from your pay (salary, bonus, overtime, etc.) at source is an employee contribution. Check the tax calculation and see what you paid tax on. If you paid tax &PRSI on the total bonus, then you have overpaid tax & PRSI; if you paid tax &PRSI on the bonus less the pension contribution, then this is an employee pension contribution.

 

[LDFerguson]

I would have thought that a better method of treating the bonus would be to pay it to you as salary then deduct it and pay it over as an AVC. In an Occupational Pension Scheme, employer contributions don't make you eligible for ARF options at retirement unless you're a shareholding director of the company; AVCs do. Having said that, Battapieman's scheme might be a PRSA, in which case all contributions will qualify to purchase an ARF at retirement.