DC Pension Scheme - AVCs and Tranfers from other schemes!

C

Cameo

Registered User
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Hi there

I am looking for some help.

I am a member of my employers DC pension Scheme. I have made some AVCs and I am also in the process of trying to transfer funds from another DC Scheme (UK scheme) into the current Scheme.

My questions are:

1. Can I transfer all funds in respect of AVCs to and ARF/MARF at retirement?

2/3. Must I purchase an annuity at retirment with the funds in respect of tranfer in from a UK scheme? If this is the case I would prefer to move funds into an PRSA AVC with someone external company if I can avoid having to purchase an annuity. Does anyone other than Eagle Star offer a PRSA AVC?

4. I really want to take as much TFC at retirement from employer and my matching contrbutions (Non- AVC) so I can minimise what I need to buy annuity with. Does anyone know how I can best to this?

5. More generally I don't really understand how monies at retirement in respect of AVCs, ER and EE mandatory contributions and monies in respect of other schemes are all treated at retirement for the purposes of taking TFC and purchasing annuities - any pointers here appreciated.

I plan to ask HR at work but I want to get things straight myself before I do.

Thanks for any responses.
 
based on your information, the position is as follows:
1. Under current legislation AVC funds can be invested in an ARF at retirement
2/3.Assuming your UK Scheme will transfer the value back to an Irish scheme (nor guaranteed), it really depends on the type of scheme as to whether these funds can subsequently be invested in an ARF on retirement. If the value is transferred into your existing employer scheme, then as things stand the money would have to be used to buy an annuity on retirement. If you can get the Transfer Value into a PRSA, then the ARF is possible.
4. Under current rules the maximum tax free lump sum on retirement is 150% of Final Salary (unless you are a 5%+ shareholder by then, in which case you can take up to 25% of the total fund). Assuming you take the max TFLS from the employer scheme, invest the AVC fund in an ARF, this will minimise the amount having to be invested into an annuity.
5. At retirement (assuming you are still an employee), all funds from occupational schemes are aggregated (incl AVCs). You max TFLS is 150% of Final Salary and the rest has be used to buy an annuity and/or invested into an ARF (again based on current legislation).

Hope this helps.

Conan
 
Thanks Conan

Ideally I need to transfer my UK fund into an AVC.

One other question you might be able to help me with - can I transfer my AVC fund connected to my current employer out to an PRSA AVC in the future?

Thanks again.
 
Firstly you need to establish an free-standing PRSA AVC.
I am however not sure that you can transfer the AVC portion of your Employer scheme into the PRSA AVC. Revenue do not allow a partial transfer from one occupational pension to another. However if your AVC is a seperate arrangement from your Employer scheme then it may be possible.
At best what you can do is stop contributing AVBCs to the Employer scheme and convert to the PRSA AVC plan.
 
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