yes this AMRF originally was designed to save pensioners from themselves i.e. buying that porsche ! and running out of cash.
In fact as i understand it a far more common phenomenon is pensioners excessively(?) limiting withdrawals for fear of running out .
Makes sense to get rid of it.
"The Approved Retirement Fund (ARF) option is being made available for ‘death in service’ scenarios in relation to company pension schemes, thus enabling the bereaved to avoid unwanted annuities with the excess in a ‘four times salary’ calculation"
Hi. Could someone explain what this means please? Does it refer to defined benefit schemes if you die when in service?
With the 15 year rule gone, it is now possible to take a transfer value from a deferred occupational pension into a PRSA. If one were to do that (leaving aside the question as to whether it's a good idea or not) is 60 the earliest age at which the PRSA can start to be drawn down?
You have to be aware that PRSA's largely follow the rules of occupational and person pensions.With the 15 year rule gone, it is now possible to take a transfer value from a deferred occupational pension into a PRSA. If one were to do that (leaving aside the question as to whether it's a good idea or not) is 60 the earliest age at which the PRSA can start to be drawn down?
If you have a transfer value from an occupational pension or were in an employer provided PRSA (even if your employer didn't contribute), you can access the value of the PRSA from age 50.
The Bob is going to be done away with soon enough so they had to remove the 15 year rule for PRSAs. But they haven't removed the cert of comparison, so it'll cost you €1,200 to transfer from an occupational pension to a PRSA. Using PRSA's as the main pension for those not in occupational pensions is only going to result in higher charges for policyholders.I see a few new twists - apparently early retirement from a PRSA re PAYE employment doesn't require you to completely sever all ties with the employer; just cease the employment. I can see that appealing to company directors in certain circumstances.
The removal of the 15 year rule on transfers from Occupational Schemes will probably make PRSAs more attractive for self-administered arrangements post-IORPS but the lower limits on contributions might weigh against that.
Thank you.In brief, maximum lump sum a pension scheme member's estate can receive in the event of death in service is 4 years' salary. Up to now, any excess would have to be used to buy an annuity for the spouse or dependent. Now any excess over 4 x salary can be invested in an ARF.
s that explicit because previously, other than the 4%, the capital couldn’t be accessed until age 75 or €12,700 of guaranteed income was obtained? Or is it derived from the relevant case law on the basis that BM may not have had an AMRF so it was never considered?