Privately Administered Pension Funds

[payupsucka]

Anyone know about Privately Administered Pension Funds (PAPFs)?

Apparently as a Company Director with >5% shareholding you are entitled to set up your own pension fund, which you can then manage as you see fit by investing in stocks, property etc.

Also, I read the figure of 146% of your declared salary as being payable tax-free into this pension by your company. Anyone confirm this?

 

[Capital1]

PAPF = SART = SAPS

They are all the same, a self-administered pension scheme, where you choose the investments, the company or the member can pay contributions (usually company because it can pay the higher levels that you mentioned).

The 146% is a bogus figure - the amount that can be put in is the amount to fund a revenue maximum pension (basically 2/3 rds of final remuneration)...this may be up to 500% (for example, more sometimes) of salary - but the max fund is €5million.

The amount that can be put in depends on a person's age, length of service with their company to reirement, and the pension fund they have built up so far.

I hope this helps.