It's a charge for the cash deposits element of pension funds.I'm not following the pensions / cash charge here.
Are they saying that anyone on a pension who has cash savings will be charged?
Are they saying that working people who are contributing to a pension fund will be charged?
Can someone set it out in a 'Pensions for Dummies' fashion?
I'm not following the pensions / cash charge here.
Are they saying that anyone on a pension who has cash savings will be charged?
Are they saying that working people who are contributing to a pension fund will be charged?
Can someone set it out in a 'Pensions for Dummies' fashion?
Not really - it's roughly the same as the 30-day (negative) yield on Euro money market funds.Quite a high interest rate they charging too, if you have few hundred thousand in cash deposits within a pension fund, it adds up to a tidy sum.
Why?There's no bank offering .65% interest rates on ordinary bank deposits in Ireland maybe State savings, so bit of cheek they are well able to load negative interest on the cash reserves in the pension funds.
Cash funds in "ordinary" pensions have been giving negative returns for some years now. My understanding is that this only applies to "self-administered" pension funds deposited in BOI - which very few people can avail of.
Absolutely. So why is Charlie Weston saying this is a first?
ITC (the pension trustee referenced in the article) would have cash on deposit that is substantially in excess of €2.5m.
The trustee/pension provider is charged negative interest and that impacts their underlying customers.
Not according to the statement -But this will apply to individual accounts within self-administered pension schemes. If the Joe Bloggs self-administered pension fund's operating bank account is with Bank of Ireland, it might only hold a small amount of cash
Not according to the statement -
A spokesman for the bank later said it was not targeting individual pension-holders and pointed out that it will be up to the companies to decide whether to pass the charge on to consumers or absorb it themselves.
“Our customers are the large trustee funds,” he said. “It’s up to the trustee and investment firms to decide if they absorb that or pass it on to consumers. They have fees and charges that they charge anyway.
Or to put it another way - the pension trustee will set up a separate account for each scheme.Each self-administered arrangement has its own bank account.
Or to put it another way - the pension trustee will set up a separate account for each scheme.
But this is simply a matter of administrative convenience. The pension trustee - not the underlying beneficiary - is still the depositor in each case.
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