The issue of what is referred to as ‘overseas transfers’ from Occupational Pension Schemes is topical at the moment. If you are employed, you may be covered by an employer-sponsored occupational pension scheme or relevant public sector scheme. This is where it varies from… Your rights. Occupational pension plans (company pensions) in Ireland can generally be described as either defined benefit or defined contribution. This section outlines the decisions that you may be faced with and discusses your options. Defined Benefit (DB) schemes. If you are, you can get tax relief for pension contributions made to pre-existing plans with a pension provider in another EU Member State. The scheme’s assets are looked after by trustees on behalf of members, their dependants and other beneficiaries. Your pension options will depend mainly on your work situation, although you may still be able to choose which option is best for you. However, The level of benefits depends on your service in the scheme and salary at retirement. These schemes are a tax efficient way of saving for retirement. There are a number of reasons for this: As a result, there are a large number of people contributing to company pension plans in Ireland, who intend residing in another jurisdiction at the time of their retirement. This is a pension plan where both the employer and employee can make contributions. Occupational voluntary Overview Pension plans in Ireland have historically been defined benefit in nature, but there has been a major shift towards defined contribution. Occupational Pension Scheme What is an occupational pension scheme? If you are getting an occupational pension from an Irish source, it is usually taxed under the PAYE system in exactly the same way as you were taxed while employed. Defined contribution (DC) schemes are occupational pension schemes where your own contributions and your employer’s contributions are both invested and the proceeds used to buy a pension and/or other benefits at retirement. Be an occupational pension scheme established in Ireland and falling within the scope of the IORP II Directive, without any local law exemptions from that Directive; and invest directly, or through an asset manager, in shares traded on an EU regulated market. In occupational pension schemes, benefits vest when the member has completed 2 years’ service (including service transferred from previous employers). If you are leaving employment and were a member of an occupational pension scheme, you may have a number of decisions to make regarding your pension benefits. According to the Pensions Board, 68% of occupational voluntary plan members belonged to defined benefit plans in 2006. Defined benefit schemes aim to provide a set level of pension and/or lump sum at retirement. Occupational pensions are taxed in the same way as salaries and wages. Option Statement Employers must make a contribution into the scheme, even if the contribution is small. Where the relief applies, the contributions to the overseas plan are treated as if they were made, as appropriate, to: an occupational pension scheme; PRSA; RAC. You may be coming, or returning, to Ireland. If your pension comes from outside Ireland, you usually pay tax in a lump sum annually. Employees of Irish companies working outside Ireland may be members of an Irish pension scheme, subject to meeting the requirements of the Revenue Commissioners. Occupational pension schemes are normally set up under trust. And employee can make contributions make a contribution into the scheme and salary at retirement efficient way of saving retirement. 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