what are rules for opening ARF with AVC contributions

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rheinie

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Can a member of a DB company scheme open an ARF or must it be a AMRF with funds he has saved into AVCs
 
A member of a DB could use an ARF as the retirement vehicle for AVCs.

However, as with a DC member, the first €63,500 would have to go to an AMRF (unless the DB pension was in excess of €12,700).
 
Access to an ARF at retirement is available only to:
  • Individuals who are 5%+ shareholders in the employing Company
  • Self Employed
  • Employees with AVC funds
  • Individuals with PRSA funds
If you are in a DB scheme, then by its very nature the benefit payable is an annuity (you would not have an ARF option). In practice, ARFs are only avialable when the funds emerge from a DC (Defined Contribution) scheme, subject to the above.
If you are a member of a DB scheme and the pension payable exceeds €12,700 p.a. then any AVC fund could be invested in an ARF (without the need to invest in an AMRF).
 
Conan said:
Access to an ARF at retirement is available only to:
  • Individuals who are 5%+ shareholders in the employing Company
  • Self Employed
  • Employees with AVC funds
  • Individuals with PRSA funds
If you are in a DB scheme, then by its very nature the benefit payable is an annuity (you would not have an ARF option). In practice, ARFs are only avialable when the funds emerge from a DC (Defined Contribution) scheme, subject to the above.
If you are a member of a DB scheme and the pension payable exceeds €12,700 p.a. then any AVC fund could be invested in an ARF (without the need to invest in an AMRF).
Click to expand...
 
Thanks for reply ,forgive me if I am still a little confused Conan you say" If you are in a DB scheme, then by its very nature the benefit payable is an annuity (you would not have an ARF option)."and also "If you are a member of a DB scheme and the pension payable exceeds €12,700 p.a. then any AVC fund could be invested in an ARF (without the need to invest in an AMRF)." I am in DB scheme and will have over 12,700 but am paying AVCs so perhaps my question is how or where should AVC s be invested
 
If you're in a DB scheme and heading for a pension > €12,700...which you are...then all your AVCs are ARFable.
 
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