I left my private sector job near the end of 2010 with 22 months' contributions and AVCs made to the company's defined contributions pension scheme. I had had a PRSA before that, but stopped contributing to it when I joined the company pension scheme.
As I have not moved to another job, I cannot transfer my contributions to another employer's pension scheme and as their value is over €10,000, I would need to get an actuarial certificate to transfer them to my PRSA, so I have opted to take a refund of my own contributions (I don't get to retain the employer's contributions because I stayed less than the necessary 24 months).
Two questions, then, on this situation:
1. I was on the higher rate of tax, so my contributions allowed me tax relief at that rate, but the pension scheme tells me that the refund made to me will be net of a 20% tax rate. I believe this is correct, though it seems inappropriate, but please contradict me if I am obliged to contact the Revenue Commissioners to pay more.
2. As all my pension contributions for 2009 and 2010 are being refunded, does that mean that I could therefore put a lump sum equivalent to 20% of my gross pay for 2010 into my PRSA? And if so, would I be entitled to the full tax relief on it?
As I have not moved to another job, I cannot transfer my contributions to another employer's pension scheme and as their value is over €10,000, I would need to get an actuarial certificate to transfer them to my PRSA, so I have opted to take a refund of my own contributions (I don't get to retain the employer's contributions because I stayed less than the necessary 24 months).
Two questions, then, on this situation:
1. I was on the higher rate of tax, so my contributions allowed me tax relief at that rate, but the pension scheme tells me that the refund made to me will be net of a 20% tax rate. I believe this is correct, though it seems inappropriate, but please contradict me if I am obliged to contact the Revenue Commissioners to pay more.
2. As all my pension contributions for 2009 and 2010 are being refunded, does that mean that I could therefore put a lump sum equivalent to 20% of my gross pay for 2010 into my PRSA? And if so, would I be entitled to the full tax relief on it?