Transfer Pension to Executive Pension plan

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PrivateI

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I recently set up an executive pension plan as I set up my own company. Up to the point when I set up the executive plan I had an existing pension which I contributed to for some years. What are the rules for transferring funds in a pension from one pension to another. I have asked a few brokers and they all seem to say different things. Are there any tax rules which prevent the transfer? There was an article in SBP this week which warned about leaving a pension frozen/paid up as over time charges and management fees would eventually erode the value of the pension
 
Hi there

  • You can transfer from your old plan IF your old plan was an occupational plan
  • If your old plan was a PERSONAL PENSION then you can NEVER transfer it to the executive plan (because one is under personal pension legislation and the other - your current one - is under occupational pensions legislation...you can never combine the two different types of pension)
  • Do you know what type of pension your "existing pension" is (it sounds to me like a personal pension hence you cannot transfer it)?
 
CapitalCCC said:
  • If your old plan was a PERSONAL PENSION then you can NEVER transfer it to the executive plan
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Do you think there is a loophole here? The member could transfer from a PERSONAL PENSION to a PRSA. Then they can transfer the PRSA into the EXECUTIVE PLAN?

What do you think?
 
Sounds possible, the max transfer from occupational to a PRSA is €10k...does the same limit apply to transfer from PRSA to occupational (such as Executive Pension Plan)?

Also, how easy is it to transfer from Personal Pension to PRSA?
 
Not aware of any monetary limits on a transfer from PRSA to occupational.

I also think it's simple enough to transfer from a personal pension to a PRSA.

However, if someone transfers into an exec from a personal VIA a PRSA, they should be aware of any exit and entrance charges that may apply to each policy, so it may not be worth their while?
 
Would maybe need revenue approval to transfer from PRSA to Executive Pension Plan?
 
My executive pension provider emailed the following response yesterday: "Unfortunately it isn't possible to transfer a personal pension into an executive pension as the policies are set up under different revenue rules. Although it's true that charges still apply to the policy when it is paid up, some may be reduced. In this case the policy fee has reduced from EUR3.81 per month to EUR2.54 once the policy was made paid up. The only other charge that will apply is the Fund Management charge of 0.75% per annum. In this case the policy statement I sent takes into account policy charges when calculating the projected fund value. If the performance was well below the projected 6% growth charges would reduce the policy value"

If it is possible to transfer from PRSA to an executive plan I will convert my personal pension to a PRSA and then transfer the PRSA to my executive plan. I will revert with details when I get a reply form my pension provider. Thanks for the advice
 
CapitalCCC said:
Sounds possible, the max transfer from occupational to a PRSA is €10k.
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Just to be pedantic - as far as I know there is no technical limit but there is a practical limit of €10K or thereabouts due to the need for some actuarial report explaining why such a transfer is in the individual's best interests but nobody can do this right now or the cost is prohibitive in most cases. Is that correct?
 
I got the following reply from my pension provider to my questions:
Is it possible to transfer my personal pension to a PRSA? If so could I then transfer the PRSA to the executive plan? Would revenue approval be needed to carry out any of these conversions?
He replied as follows:
It is possible to transfer a personal pension to a PRSA and then transfer that PRSA to an executive pension. The only pension product that needs individual Revenue approval is an executive pension and is already revenue apporved in this case). In terms of the requirements to set up a PRSA one of our sales reps could advise you as to how best to go about this. I know XXXXXXXX set up your previous policies, if you wish I can forward him this correspondence and ask him to get in touch with you?

So you could say that the loophole mentioned earlier is indeed a valid way to transfer funds in my personal pension to my new executive pension.

Thanks again for all your advice.
 
Well done Private!

Yes Club the problem is getting that Actuarial Report.
 
I want to make AVC for 2005 PAYE earnings but am in the process of transferring my pension from my ex employer into a new executive pension. The broker felt that I would not be allowed to make contributions to the new executive pension in this way and would need to set up a PRSA as well. I would prefer to only have a single pension so my question is can i make contributions directly and, if not, can I close the PRSA at a later date and transfer the funds to the new pension.
 
Possibly ropey advice from your broker so? Maybe s/he has some vested interest in selling you another pension/PRSA?
 
ClubMan said:
Possibly ropey advice from your broker so? Maybe s/he has some vested interest in selling you another pension/PRSA?
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Thanks for the info.
I'm hoping he was just uncertain about the rules. It's for a Self Directed Eagle Star pension if you have any opinion about that.
 
ClubMan said:
No excuse in my opinion if he's doing this for a living and you're paying him!
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I'm not paying him, it's a favour to reduce\eliminate the initial contribution charges etc. on transferring a lump sum from my ex employer and his business is predominantly mortgages so I can accept gaps in his knowledge of the rules and regulations so long as he tells me when he is uncertain.
I intended to call Revenue to confirm this later today.
 
DirtyH2O said:
I'm not paying him, it's a favour to reduce\eliminate the initial contribution charges etc. on transferring a lump sum from my ex employer and his business is predominantly mortgages
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Another broker who does not charge.

I wonder what are those "initial contribution charges"?

God those brokers are soo nice :)
 
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