Does anyone have a recommendation for an independent fee-only advisor specializing in Irish-to-Malta pension transfers? I’m in the public sector and retiring in a couple of years, so I need someone who knows the ins and outs and pros and cons of moving AVCs to an IORP. Thanks!
Moving AVCs to Malta IORP. Looking for independent financial advisor
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Anything of use here?
Moving Pension to Malta
https://youtu.be/WUL4XgXp9Q0?si=SfPufp99Ejh3aFXy I recently watched the above YouTube video on moving your pension to Malta with ITC. I had heard of this before but had thought it meant taking up residency there but that appears not to be the case. I haven’t seen much discussion here on this...
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Has anyone transferred his/her pension to Malta?
How did you get on? Who did you go with? Any other comments/advice?
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Strategic transfer of pension overseas
This possibility came up on a different thread (thanks Gordon Gekko) and I don't want to bring that thread off topic. On the face of it, this seems like an interesting option. Does anyone know where I can get reliable information on this please? Has anyone actually gone through the process...
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Transferring my pension fund (but not myself) abroad
Following the recent 0.6% levy on Irish pension funds, I'm looking at possible alternatives for both pension and non-pension money. I live and work in Ireland, pay tax here etc. Is it possible to transfer my pension funds to a pension company outside of Ireland even though I still live here...
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LDFerguson
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Two advisors that work on cross-jurisdictional pension transfers are Opes Financial Planning and Marc Westlake of Fairstone. Marc sometimes contributes to Askaboutmoney.
That said, if your AVCs relate to an Irish public service job, you may struggle to transfer them to Malta. It's not something I have experience of, so there may be workarounds.
LDFerguson
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That was what I was thinking also, but as it's not something I do, there might be some Cunning Plan method I'm not aware of.
Thanks all. I think you first have to transfer the AVCs to a PRSA (which I believe is possible even if the AVCs are linked to a public sector main scheme) but I'm not sure and Revenue pension manuals are not an easy read. That's why I need advice. The Malta scheme looks attractive because I plan to move abroad after retirement
LDFerguson
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You cannot transfer an AVC into an "ordinary" PRSA. You can transfer it into an AVC PRSA, which is a different product to a PRSA, despite similarities. So the link remains to the public sector main scheme and I think it's that link that will prevent you from transferring to Malta.
I thought so too but this is information from ITC:
"Public sector pensions are usually unfunded and therefore non-transferable. However, funded additional benefits (e.g., AVCs in occupational schemes or AVC PRSAs) can be transferred, following the same rules as other occupational pensions."
"Public sector pensions are usually unfunded and therefore non-transferable. However, funded additional benefits (e.g., AVCs in occupational schemes or AVC PRSAs) can be transferred, following the same rules as other occupational pensions."
My personal view for information purposes only is that if you leave the public sector you might be able to transfer your AVCs into a new employers occupational pension, say a master trust, then you might be able to use the IORPs transfer rules to transfer the new occupational scheme oversees either to a new occupational scheme in the new country without prior Revenue approval or to a personal arrangement which would require prior Revenue approval.
However, if you try to directly transfer a PRSA overseas you will get hit with a tax charge so you would need an interim employment after leaving the public sector AND transfer the AVCs to that new employers scheme.
We used to be able to use a SSAS provided you had a sponsoring employment to do this and then wind up the scheme. But you can’t do that now and the very nature of a master trust means that if you leave your new employment the scheme isn’t going to be wound up. Which means an overseas transfer is going to need the consent of the trustees whereas previously the trustee and the member could be one and the same.
You can generally transfer your public sector Additional Voluntary Contributions (AVCs) to a new private sector employer's scheme, provided the new scheme accepts transfers.
Key Considerations:
Perhaps a more simple option would be to purchase an annuity with the AVCs at retirement and apply for a PAYE exclusion order if you are living abroad, and have the pension paid with no Irish tax deducted at source.
Marc Westlake CFP, TEP, APFS, QFA, EFP
Chartered, Certified and European Financial Planner, Registered Trust & Estate Practitioner
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However, if you try to directly transfer a PRSA overseas you will get hit with a tax charge so you would need an interim employment after leaving the public sector AND transfer the AVCs to that new employers scheme.
We used to be able to use a SSAS provided you had a sponsoring employment to do this and then wind up the scheme. But you can’t do that now and the very nature of a master trust means that if you leave your new employment the scheme isn’t going to be wound up. Which means an overseas transfer is going to need the consent of the trustees whereas previously the trustee and the member could be one and the same.
You can generally transfer your public sector Additional Voluntary Contributions (AVCs) to a new private sector employer's scheme, provided the new scheme accepts transfers.
Key Considerations:
- Options:You have three main options when leaving:
- Transfer to your new employer’s pension scheme.
- Move to a Personal Retirement Bond (PRB).
- Leave the AVCs invested in the existing plan.
- Transfer Process: You will need to complete an application form from your new provider and arrange for a transfer value calculation from your current public sector AVC provider
- Approval: Transfers to private sector schemes are generally permitted, but you must check that the receiving scheme can accept them.
- Restrictions: If you are a member of the Single Public Service Pension Scheme (SPSPS), there may be restrictions on transferring, although general AVCs can typically be moved, while the main scheme benefits cannot.
Perhaps a more simple option would be to purchase an annuity with the AVCs at retirement and apply for a PAYE exclusion order if you are living abroad, and have the pension paid with no Irish tax deducted at source.
Marc Westlake CFP, TEP, APFS, QFA, EFP
Chartered, Certified and European Financial Planner, Registered Trust & Estate Practitioner
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My personal Substack. Click to read Marc's Substack, by Marc Westlake, a Substack publication with hundreds of subscribers.
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Thanks Marc, this is very helpful.
Would being non-domiciled in Ireland and having a bona fide reason (moving abroad after retirement) prevent a direct PRSA transfer from being taxed in Ireland?
Also, if I understand you correctly, converting the AVCs into a PRB
would not allow me to bypass the new private pension/master trust route?
On the annuity side, rates don't seem particularly attractive at the moment, so I'm keen to explore the alternatives.
Would being non-domiciled in Ireland and having a bona fide reason (moving abroad after retirement) prevent a direct PRSA transfer from being taxed in Ireland?
Also, if I understand you correctly, converting the AVCs into a PRB
would not allow me to bypass the new private pension/master trust route?
On the annuity side, rates don't seem particularly attractive at the moment, so I'm keen to explore the alternatives.
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