Pension issues facing you today

Messages on September 13th, 2012 No Comments
  •  Pension Levy
  • Imposition of an annual 0.6% levy on nearly all pension benefit structures
  •  Will be in place until 2014 and is based on the value of scheme assets at the 30th June
  •  Look at ways of offsetting the cost of the levy – i.e. lower cost structures
  • Can you access lower cost structures through reduced product charges?
  • ARF Planning  Imputed distribution remains at 5% for funds < €2m
  • New 6% rate for funds > €2m
  • Not just ARFs that are taken into account in determining fund size – now applies to Vested PRSAs as well
  • AMRF reduced back to €63,500

What positive action can you take?

  • Help maintain ARF values by looking at lower cost structures
  • Review your Asset choice to help maintain underlying capital value
  • Ringfence €63,500 into an AMRF – not liable to imputed distribution Earnings Planning
  • Move to company contributions where possible  but beware of salary sacrifice rules
  • If you are self employed it might be worth looking at the following –
  1.                                            Incorporation
  2.                                            Parallel employment
  3.                                            Service company structures
  4.                                            Opportunities for employing a spouse.

Fund Threshold Planning

Standard Fund Threshold of €2.3m now applies to pension funds.

Avoid high-tax rollup by triggering BCEs where possible – Manage risk / reward strategy – to ensure the SFT is not breached

Fund a spouse’s pension – i.e. double the allowance

Contact Your Local Independent Financial Adviser

Lucas Financial Consulting Ltd are based near Carrickmacross Co Monaghan. As we straddle four counties – Louth, Monaghan, Cavan and Meath we are ideally placed to become your new Local Independent Financial Adviser


Warning: These funds may be affected by changes in currency exchange rates.


Warning: Past performance is not a reliable guide to future performance. 


Warning: The value of your investment may go down as well as up.


Warning: If you invest in these funds you may lose some or all the money you invest.


Warning: A deferral period may apply to withdrawals and/or switches from certain funds. Please refer to your product documentation for further details.   




No Responses to “Pension issues facing you today”

Leave a Reply