PENSIONS IN IRELAND
Most of the larger employers in Ireland offer occupational pension schemes, but many of the smaller companies do not. There is no legal obligation for employers to provide scheme for employees, but it is something that the government strongly encourages them to do. Regulated by the Pensions Board, the contributions to approved occupational pension schemes may attract tax relief. Regulation for tax purposes is supervised by the Retirement Benefits District of the Revenue Commissioners.
A personal pension scheme or Retirement Annuity Contract (RAC) is an arrangement by a self-employed person or an employee who is not a usually a member of an occupational pension scheme, to provide a pension on their retirement or to surviving dependants on their death.
Occupational pension schemes may be contributory or non-contributory, funded or unfunded, defined benefit or defined contribution. Both you and your employer pay contributions towards the contributory scheme. Just the employer contributes to non-contributory schemes.
If you are a member of an approved pension scheme you can get tax relief at your highest rate on your contributions to the scheme. There are various rules that pension schemes must meet in order to get the tax relief and there is a limit to the amount.
| Age |
Limited To |
|
| Up to 30 years |
15% of *net relevant earnings |
| 30-40 years |
20% of *net relevant earnings |
| 40-50 years |
25% of *net relevant earnings |
| 50 years plus |
30% of *net relevant earnings |
*For employers earnings means gross pay for tax purposes. For the self-employed, earnings means net relevant earnings (earnings less allowable expenses).
You pay tax on the pension when you receive it.
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