PRSA/AVC - Assign to patrner /separation

D

deco87

Registered User
Messages
424
I have public servant and I have a PRSA/Avc attached to my superannuation ..pension.
It finishes in 18 months time. I cannot access it until I retire in line with revenue rules.

My query.

I will be separating and I wonder can this policy be assigned /transferred to my partner?
If so it would be included as part of the separation settlement...and it would suit me as a way of paying her off.

I have a feeling you cant do that ...if not...... can part of a pension order direct (court directs ) that the policy be assigned to my partner when I retire?
I am anxious to get a judicial separation without undue delay , if this could be done it would make financial end of things go much more smoothly ..thks for any advice /opinion

Paddy
 
In dividing the assets, she can be entitled to a portion of all of your pension. It is called a Pension Adjustment Order.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Oh yes thks ...but what I wondered was could I sign over or court orders that she be assigned policy with my full consent ..can she then utilise the policy in relation to her own means. Ie I'm on the higher tax rate so it's a bigger loss for me as higher rate will be deducted from any ARF in my name ..subject to revenue limits ...if she is in the lower rate which she will be ..can she ulitilze the policy as she wishes ..it will be more advantageous to her tax wise ..that's what I was wondering thks

P
 
Yes, it can become a policy in her own name and she can mature it and use the benefits in her own name.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
One cannot normally assign pension assets. However if as part of a legal separation you agree a Pensions Adjustment Order through the Courts then some of your pension assets can be assigned to your Spouse. But it must be part of a judicial separation.
 
I'm delighted to know that. It smooths the pain a bit ..very much obliged to you ..many thanks
P.
 
Yap there will be no issue. I agree to give in full not partially ..a judicial separation is what we want. There is no disharmony. Just trying to give what's due. I'm delighted to know that.
As of now policy finishes in 18 months after 15 year term.
I could not access it till I retire.
Wife is 5 years younger than me.
If policy is fully assisnged to her .. legally by pension order .,..does she have to wait till 66 if she works till then to access it ?
Any advice appreciated
 
Once the order is granted, she can transfer the benefits into her own name. She won't have to wait until age 66 then.



Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Gosh that's fantastic. She will be able to cash it in ..as it's finished it's "life" as such ..has completed the 15 years of the policy.

She will have to get a job... it will bring her in at the lower tax rate ....so as far as you know ..she can access it while working?

For me it's no use as I would have to retire in order to access it as I am a public servant.
I need to continue on working for a few years to try build on funds to some degree and try pay for young lads education ( He is only just 17 but doing the leaving cert presently)

You say she can access it provided it's A. Legally transferred to her. B. She can (as I can't) access it while in full paid employment ?

If that's definately the case ...it would be tremendous ..in a sad situation.
Many thanks

P.
 
so at mediation today , I enquired about the PRSA/avc policy.
Mediator seems to think if as part of a separation agreement , I can state that all benefits received will be divided equally between me and herself
thereby not having to get a pension order and the expenses that goes with doing that. (We have agreed 50/50 house split also) I am not retired yet.

Its 15 year policy to expire June next year. I know it depends on superannuation etc. as to how much can be taken in cash then it goes to ARF.
My query is , if I was to get the policy assigned to her name only. Its in mine. It has to be done by court order to allow pension provider to act, I appreciate.
If legally then in her name , and she would be on the lower tax rate ( I was on high rate throughout the years and claimed difference annually), can she utilise it at policy end .i.e. June next year? It has nothing to do with me after assigned to her ...Is there any mechanism to allow her to access the policy , as I don't have any other funds available , and this would do her to get started again. She would be happy to leave my pension/gratuity alone at that point. appreciate any advice or guidance .
Many thanks
Paddy
 
SBarrett said:
Once the order is granted, she can transfer the benefits into her own name. She won't have to wait until age 66 then.



Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
Click to expand...
This is brilliant to know. I wonder would you be able to expand with a little more detail? If she could benefit when policy ends , it would be a huge relief as the child has education bills that some of this could be used towards if required. Can she access all , does it depend on her tax rate etc ..she is back working only in the last few months. Much appreciated ...Thks ....Paddy
 
deco87 said:
This is brilliant to know. I wonder would you be able to expand with a little more detail? If she could benefit when policy ends , it would be a huge relief as the child has education bills that some of this could be used towards if required. Can she access all , does it depend on her tax rate etc ..she is back working only in the last few months. Much appreciated ...Thks ....Paddy
Click to expand...

Expand how? When the adjustment order is granted, she can transfer the value of the AVC's into a policy in her own name and draw down on the policy.

It's a load of paperwork that has to be completed.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Thks for reply. What I was getting at really was ....I cannot access the policy till in retire. It is then linked to my superannuation scheme as regards the amount that can be taken subject to the tax rate I'm on. Them it turns to an ARF.
So
..after all the paperwork is completed and the policy is assigned to her by a court can she take all the funds that have been built up over the years ?
When ? If she is on lower tax rate ..do revenue claw back the relief i was given over the years ? These are the queries I was wondering about ...ideally if she can ...she would like to cash it in completely and start her life after a broken marriage financially as quickly as possible. Thks
 
Once the particular pension fund is transferred to your wife (as part of a Divorce or Judicial Separation) then it is in effect a pension plan in her name. So as with any pension plan, she has the normal pension options.
Depending on her age, she may be able to encash the policy, take a portion as a lump sum and use the balance to provide an income via an Annuity or an ARF/ AMRF. But it is unlikely that she can simply encash it all for a lump sum. It is still a “pension plan” and thus subject to all the rules around how pension funds are used.
 
You must log in or register to reply here.
Back
Top