Escaping the new pensions levy?

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Kemo_Sabe

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Bank deposits are highly portable, we can move them abroad with a little bit of paperwork followed by a few mouse clicks (and indeed, many people have chosen to do so).

Now that the government has decided that private pension funds are to be looted here, do similar rules apply to them? Could one simply move one's pension fund to another jurisdiction in order to escape the new 0.6% levy?

I have read some online articles suggesting that the EU wanted to make pensions more portable between member states; does anyone know whether this is in fact a reality?
 
It is possible. Whether the grass is greener elsewhere is another story. You would need to consult with a tax consultant versed in the taxes/rules of pension plans in the country you planned to move the fund to, to ensure it was actually worth doing. It would also have to be to another member of the EU as far as I know. The government may try to close this loophole soon too.
 
There are regulations governing the transfer of occupational pensions and PRSA's to foreign jurisdictions and what conditions that need to be met to move a scheme abroad.

Not terribly onerous as it stands, however as StevieC suggests it would be best to get advice on where to move it and the implications of same.
 
Kemo_Sabe said:
I have read some online articles suggesting that the EU wanted to make pensions more portable between member states; does anyone know whether this is in fact a reality?
Click to expand...

Yes but not in the way you are thinking!!! If you move to an other EU state or one of the other three countries involved in the free movement of peoples bi-laterals then it is possible to have the majority your pension contributions moved from an Irish employer's scheme to the scheme of your new employer. But from a practical point of view that is about it.

Also depending on where you are going and how the new employer handles your move into their fund, you can gain or loose a lot in the process.

Jim (Switzerland)
 
Jim2007 said:
Yes but not in the way you are thinking!!! If you move to an other EU state or one of the other three countries involved in the free movement of peoples bi-laterals then it is possible to have the majority your pension contributions moved from an Irish employer's scheme to the scheme of your new employer. But from a practical point of view that is about it.

Also depending on where you are going and how the new employer handles your move into their fund, you can gain or loose a lot in the process.

Jim (Switzerland)
Click to expand...

I will be working for a UK company (but based in Ireland) from about October, this might help?

(on the other hand, I don't want to be exposed to the currency risk of having my pension fund in GBP and my outgoings in EUR)
 
Is this easier to accomplish when you have a lump sum when you are changing jobs?

I got laid off last year and I've started with a new company in the last four weeks. I was thinking that it might be better to transfer the lump to an alternative scheme rather than add it to the new one.
 
There are tax laws in other EU countries regarding Pension, too so as other posters have said, do your research well before you move anything. Germany for example (although some people find it attractive to put their savings in a German bank) taxes private pensions and I think (open for correction) it's even higher than the 0.6% planned here.
 
Kemo_Sabe said:
I will be working for a UK company (but based in Ireland) from about October, this might help?

(on the other hand, I don't want to be exposed to the currency risk of having my pension fund in GBP and my outgoings in EUR)
Click to expand...

Kemo,

I work in Ireland for a UK/US company. As i am on an Irish contract I am paying contributions to my pension in €. I was forced to elave my UK non-contribution pension (gutted at that) as there is some legislation that you cannot have non-contribution pensions outside of Ireland -something to do with funds being kept in the country?

As long as you have an Irish contract for a foreign company the pension fund should be in €. I also believe that there is some responsibility for employers to ensure you have access to a PRSA - I was set up with financial advisor who discussed all available options to me,
 
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