Is it illegal to have two pensions

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corcoran1

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I am in my current employment since 2004 and eligible for the company pension since 2006. Up until now its a non contributory defined benefit scheme. This is now changing and we are being asked to contribute. My problem is that I have had a personal pension since 1999. I spoke to someone in work yesterday who said that it was illegal to have this when I am in a pension scheme in work due to the fact that I would be getting tax relief on the personal pension. He said that revene could make me pay all the tax relief claimed along with a fine. I checked with the company i have the pension with and the amount that i pay every month is the gross amount. They said that iits up to me to claim the tax back myself by way of sending in a cert every year. I have no recollection of ever doing this so i doubt i did. Can anyone advise me what to do and also what my options are regarding this pension(cancelling it, getting some sort of refund or possibly transferring it to the company pension)
 
Hi corcoran1,

It's not illegal to contribute to a Personal Pension while in an Occupational Pension Scheme, but it's not advisable either as you're not entitled to claim tax relief on the Personal Pension contributions yet you may be taxed on some of the proceeds when you retire.

But if you haven't actually claimed tax relief on your Personal Pension contributions then at least there's no requirement for you to repay such tax relief.

You don't by any chance have a second source of taxed income, do you? If so, you could claim tax relief on this income from your Personal Pension.

I'd suggest that you stop making further contributions to your Personal Pension and instead contribute an Additional Voluntary Contribution (AVC) of the same amount to your employer's scheme. That way you'll be entitled to tax and PRSI relief assuming you're within Revenue limits. Check out the details of your employer's AVC arrangements (if any) and compare them with an AVC PRSA you can arrange through any good pension broker.

Regards,

Liam D. Ferguson
 
Thanks for the advice. On a different note would you know of anybody that gives independent financial advice(actually independent).
 
Politicians and senior Exec's seem to have no problem with having MULTIPLE pensions so why not you
 
There are lots of independent financial advisors out there, simply do a google search or visit the PIBA website, to find one in your area.
 
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