ER gives cash for pension provision; options open to EE?

Setanta12

Registered User
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In new role, ER paying 5% of gross salary as pension entitlement. Employer could pay cash to the EE if requested - I appreciate that this means the EE is taxed on the 5% as if it were ordinary salary/wages.

What are the options and how to go about this?
 
Simple - Either take the 5% as a pension contribution or take it as taxable pay. What's the right option? It depends on the employee's circumstances and whether he or she needs the extra cash. The type of pension it's going into matters. If it's an occupational / company scheme, the contribution is not a taxable benefit in kind. But if it's a PRSA, the treatment is slightly more nuanced.
 
Any benefit - not ignoring the time-value/inflationary cost - of not seeking the money from the 'ER now and letting it accumulate until I 'draw it down' from my 'ER for a pension product next year or the year after?
 
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