Redunancy implications on pension

H

Hello2015

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Hi all

Hoping someone can advise me. I am currently being made redundant. My employer has not being very helpful about working things out and has made a few blunders already so I want to double check a few points.

1)My employer has said that my payment in lieu of notice is bundled with my exgratia for the purpose of establishing my threshold for tax. I had thought that payment in lieu of notice was separate and was not taxable if I'm not working for this period, as long as there was no reference to this in my employment contract (which there isn't). Can they bundle both together? and is the period in lieu of notice taxable?
2) For the basic exemption (€10,160 + €765 per year of service) my employer is working to 14 years as he says the first year doesn't count, he couldn't clearly explain why. I've seen no reference to this anywhere else. I've been with them for 15.3 years. Is he correct?
3) I have now been informed that they will use an alternative exemption route for me - the Standard Capital Superannuation Benefit (SCSB). My exemption level via this route is much higher and I wont be exceeding the threshold and paying tax. My question is what is the impact on my pension via this route versus the other route. They seem very unclear about this.

Thanks in advance
 
3) I have now been informed that they will use an alternative exemption route for me - the Standard Capital Superannuation Benefit (SCSB). My exemption level via this route is much higher and I wont be exceeding the threshold and paying tax. My question is what is the impact on my pension via this route versus the other route. They seem very unclear about this.
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The SCSB is reduced by the Net Present Value of any pension lump sum receivable from a pension.
 
If you avail of the SCSB route and get a higher tax-free amount now, then you give up your right to get a further tax-free lump sum from your Pension Fund when you do retire. You will then have to use take all your pension benefits as income (taxable).
So it down to whether you want a higher tax- free amount now (and waive a future right to a pension tax-free lump sum) or retain your right to a tax-free amount from your pension later but accept tat some of your redundancy payment now will be taxable.
You just need to consider the numbers involved.
 
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