Company Pension Arrangements
An Executive Pension is a pension set up by employers for executives or key employees of the company. The pension is set up under a trust and typically the employer will act as the trustee.
With an Executive Pension both employees and employers can make contributions. The ultimate value of your pension plan will depend on the contributions you and your employer have made over the years and the investment return the funds have achieved in your Executive Pension.
Not only does an Executive Pension provide you with a long-term plan for your retirement, it is also a tax efficient way for you to set aside money for when you retire as well as being a tax efficient way for your employer to provide you with employee benefits. In addition to employer contributions you may be able to contribute up to 40% of you income (depending on your age) into your Executive Pension and claim tax relief.
Southeast Financial Services will talk to you about your expectations for retirement and your personal circumstances. In understanding what you hope to achieve we can offer you helpful advice in deciding if an Executive Pension is a suitable plan for you.
At a minimum, Irish companies must legally offer a Personal Retirement Savings Account (PRSA) arrangement to their employees. Although compulsory, it can be great for your company and the employee. There are a number of alternative arrangements to a PRSA as follows:
Contact us and we will take the company objectives to market and comes back with the best solution for your company needs.
Generous tax relief for for the company
Any Occupational Pension (Company) Scheme is a great way to attract and retain talent to your organization in an incredibly tax efficient manner. It can also make a huge difference to your employee’s overall retirement position in the future.
Contributions made by the company into an Executive Retirement Plan can usually be offset against Corporation Tax as an allowable business expense (subject to Revenue limits).
Contributions made by the individual scheme member to his / her executive pension plan are tax deductible for the individual against net relevant earnings. The current maximum limits for income tax relief are as follows:
Age Maximum Tax relief as % of Earnings (NRE)
< 30 15%
> 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.
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.
- Leaver options – when leaving service of your current employer, you will typically be offered a number of leaving service 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
If you are happy with our service, we would be delighted to continue our relationship with you, in other areas of your important money matters such as, financial planning, mortgage advice, Investment/Saving, retirement planning and personal protection, please browse these links for more information.