I have an executive pension at work currently invested in a cash fund. About to retire and I want to transfer the pot from Irish Life to Zurich. I assume I get 25% tax free from Irish Life before I transfer the remainder. Will I be charged an exit fee or will I get the full value of the pot ? Thanks.
Retiring and pension transfer to another provider
- Thread starter Roro999
- Start date
Yes, the maturing company will pay you the 25% and then transfer the balance to the receiving company.
As to whether there may be exit charges, that depends on the contract. You'd have to ask Irish Life or the intermediary that set the executive plan up for you. If you have access to your account online you may be able to tell from the values - if there's a difference between the nominal value and the transfer value (being less) then there's a penalty. There really shouldn't be any penalty if you're retiring at the normal retirement age that you originally selected though.
If you don't want exit charges on your ARF(?) then you don't have to buy one with them on it.
With the recent changes to Executive/Directors Pensions there are now no new contracts available with exit charges.
Gerard
www.prsa.ie
As to whether there may be exit charges, that depends on the contract. You'd have to ask Irish Life or the intermediary that set the executive plan up for you. If you have access to your account online you may be able to tell from the values - if there's a difference between the nominal value and the transfer value (being less) then there's a penalty. There really shouldn't be any penalty if you're retiring at the normal retirement age that you originally selected though.
If you don't want exit charges on your ARF(?) then you don't have to buy one with them on it.
With the recent changes to Executive/Directors Pensions there are now no new contracts available with exit charges.
Gerard
www.prsa.ie
LDFerguson
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As it's an Executive Pension plan, you have two options as to how to calculate the tax-free lump sum - one is the 25% of the fund you mention and the other is a calculation based on the number of years' service and your salary. Both options should be looked at as you can choose the one that suits you best.
Yes you do.
There would only be an exit charge if it's part of the contract with Irish Life. You'd need to ask Irish Life or the broker.
Regards,
Liam
www.FergA.com
Yes you do.
There would only be an exit charge if it's part of the contract with Irish Life. You'd need to ask Irish Life or the broker.
Regards,
Liam
www.FergA.com
LDFerguson
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Not sure that anybody said it was the default?
LDFerguson
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I don't think that @Roro999 said anything about it being the default. I read the question as wondering if perhaps there would be an exit fee imposed by Revenue. There isn't, but not all posters here would automatically know that.
Actually my question related to an Irish Life exit fee and if such existed having paid contributions for over 25 years and currently in cash funds and about to retire. Thinking strongly of finishing now with Irish Life taking my 25% tax free and using Zurich for an ARF.
LDFerguson
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After 25 years' there shouldn't be any exit fee to Irish Life but you'll still need to get them to confirm that, as it's possible that your particular contract might still have them if, for example, you increased your contribution in recent years and the broker got paid commission on the increase.
Exit charges are slowly being consigned to history - PRSAs and new contributions into Master Trusts don't feature them - but older products still have them.