Why would pension lump sum for a PT worker be taxed at marginal rate??

[NOAH]

A friend of mine who works part time, 2 days a week is due to retire at end of February. They joined a pension scheme in July 2014 at the company where they work and employer pays so much and they pay so much. The scheme is administered by firm ,used to be IFG. A few years back they were told come retirement they could take all contributions as a lump sum as pension would be very small ie they would get back value of fund.



Help

 

[Odea]

My wife is in a similar situation. It's a Defined Contribution pension. She has been told that because the total amount of her fund was so small she can take the full value of her fund tax free and as a lump sum. It is being processed as we speak.

 

[Joe_90]

I wonder is this falling into the "Trivial" category.

http://www.oneview.mercer.ie/plan-y...ivial-payment-option-on-early-retirement.html

 

[NOAH]

perfect, that's the answer, they just omitted to say tax would be payable.