Prior redundancy does it impact my future pension

[thewire2020]

Sorry if this has been covered below

Statutory redundancy August 2007 Ireland
Took the additional €10,000 extra tax free offer

age 52 now , retirement not until 66 I guess however my private pension will be available at age 60. Not a huge pension by any means current value €157k, but will my tax free amount be reduced because of the redundancy from 2007?

Hope this make sense

 

[Dave Vanian]

Is your pension fund in an occupational pension scheme from the 2007 job? If so, then you appear to have waived the right to a tax-free lump sum at retirement from it. If this pension fund relates to a different job, then what you did in 2007 is irrelevant.

 

[ginslia]

Although both are capped at the same amount over your lifetime (200k), the retirement tax free lump sum and the redundancy tax free lump sums are separate, unless the situation as described above applies.

if you were made redundant from Job A, and also worked in Job B & C etc, only the lump sum from Job A is affected by the waiver, and you can still get any retirement lump sum from other jobs/pension funds.

 

[thewire2020]

Thanks you both, I amalgamated my pension from 2007 to my current job but only in 2011. I cannot remember the value of it though at that time

 

[Dave Vanian]

Okay so the current value of €157K is a combination of the old and current pension schemes. It's the job of the scheme administrators to keep tabs on the breakdown between the two. If the scheme admin is doing their job right, then when you retire...

(1) The portion of your fund value that originated from the old job won't have any tax-free lump sum entitlements.

(2) The portion of your fund that originated from subsequent contributions in your new job will.

That said, over the years I've seen examples where the administrators didn't take into account the fact that you had waived your entitlement to a lump sum in the previous pension scheme.