Group Pension Schemes
Group pension schemes are set up by an employer for the benefit of the employees of a company. Schemes can range in size from two members to thousands of members. The scheme assets are held in trust for the benefit of scheme members. The scheme trustees decide on how the scheme invests accumulated funds. Each scheme is unique as it may have different membership rules and scheme member benefits. Scheme members may have some level of choice of how his / her pension account is invested within the scheme, but the choice is usually limited to funds chosen by the scheme trustees on behalf of the members.
Our Services to Members of Group Pension Schemes
We can provide members of defined contribution group pension schemes the following independent advisory services –
- Pension Funding Review – we can analyse your pension position, by looking at your target pension, your contribution level and your pension investment performance.Read more » Pension Funding Section
- Leaver options – when leaving service of your current employer, you will typically be offered a number of leaver options with regard to your accumulated pension fund. We can help individuals understand what these options are and also explore the pro’s and con’s of each.
- AVC investment – Members of group schemes may wish to look at external pension products for their AVC contributions.Read more » AVC’s Page
Tax Relief
Contributions made by individual scheme members to the group pension scheme are allowable for tax relief at the individual’s marginal income tax rate. The current maximum limits for income tax relief are as follows:
| Age | Maximum Tax relief As % of Earnings (NRE) |
| < 30 | 15% |
| 30 – 39 | 20% |
| 40 – 49 | 25% |
| 50 – 54 | 30% |
| 55 – 59 | 35% |
| > 60 | 40% |
The limits above are capped to a maximum earnings ceiling of €115,000 for 2011.
It is possible to backdate personal once off contributions paid in the current tax year, to the previous tax year, once the contribution has been made before Oct 31st. It also possible to carry forward any excess contribution made, in order to gain tax relief in future years.