Personal Retirement Bonds

Does anyone know a web site where I can do extensive research into the rules about Peronsal Retirement Bonds? The sites of the banks have very little data.

The retirement scheme at a company at which I used to work is being wound up (as the company went into liquidation after I left the company.) The advisers state that I can do one of two things: I can transfer the benefits to another employer pension scheme (which is not an option as I'm self employed), or I can transfer it to a Personal Retirement Bond.

At the moment, the questions I have include:

1. If after I transfer the funds to the PRB I decide to move to another country, either for a few years or, possibly, forever, what impact is there?

2. Wherever I'm living, at what point am I able to start to take money out? Is it based on age or some other criteria?

3. When I start to take money out, what is the 'process'? Is there a monthly flow, or what? Is there any caps / limits?

4. And what if I was to die before the balance went to zero, what happens to that balance.

5. If I was to again go and work for an Irish company with a scheme, could I roll the PRB into that scheme?

I appreciate very much any help people can provide.

Hi Desmond,

1. If after I transfer the funds to the PRB I decide to move to another country, either for a few years or, possibly, forever, what impact is there?

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Your PRB will remain invested with your chosen provider here in Ireland. When you retire, you will be drawing your benefits in Euros, but they can be sent abroad. If you move abroad permanently, some countries facilitate overseas transfer of pension funds (so you could amalgamate your Irish pension fund with another pension fund in another country), others don't.

2. Wherever I'm living, at what point am I able to start to take money out? Is it based on age or some other criteria?

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Your PRB will have the same Normal Retirement Age as the scheme from where the funds were sourced. Usually, you may choose to draw your benefits from age 50.

3. When I start to take money out, what is the 'process'? Is there a monthly flow, or what? Is there any caps / limits?

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Again this is determined by the rules of the original scheme. In general, you can receive a tax-free lump sum and the balance in the form of pension for life. There are limits, based on your salary in the previous employer, your years' service with that employer and certain other factors.

4. And what if I was to die before the balance went to zero, what happens to that balance.

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If you have purchased an annuity at retirement (i.e. a guaranteed pension for life), it dies with you, subject to certain minimum payment periods. However, you may be able to bypass the annuity route and invest some of your accumulated pension fund in an Approved Retirement Fund. This depends a lot on your personal circumstances.

5. If I was to again go and work for an Irish company with a scheme, could I roll the PRB into that scheme?

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Yes, although whether or not this was the best course of action for you would warrant investigation of the pension scheme at that time.

Incidentally, be aware that you're not obliged to take the PRB on offer. You can choose your own, if you can find one more suitable to your needs.

I wrote a guide to PRBs which I can e-mail you if you like.

Regards,

Liam D Ferguson
www.prsacentre.com