Maximum pension contributions: Employers contributing to PRSAs

M

MysticX

Registered User
Messages
193
Hi,

Regarding relief for maximum contributions I always thought it was calculated against gross salary... for example:
-You have a relief of 15%
-Your employer contributes 5%
-Therefore you can contribute another 10%

However there's a link on mercer which explains relief is calculated against salary plus employer pension contribution... if you adjust for such in the above example:
-You have a relief of 15%
-Your employer contributes 5%
-Therefore you can contribute another 10.75% ((15% of 105% of salary) - employer contribution of 5%)

http://www.oneview.mercer.ie/plan-your-pension/retiring-soon/maximising-pension-contributions.html


Can anyone knowledgeable in pensions tell me whether this is correct or not?
 
That's just for a PRSA.

Take a 35 year old on €60k a year. His employer contributes €10k a year. His salary is deemed to be €70k a year and 20% of it can go into the PRSA as per the age limits. (i.e. he can contribute €4k also).

For an employer scheme, the above doesn't apply and the employer contribution is ignored.
 
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