Trivial Pensions

What is a Trivial Pension?

If you are a member of an Occupational Pension Scheme, PRSA, Personal Pension you may be entitled to a Trivial Pension. Revenue will allow you calculate your entire pension into a Lump Sum if it meets certain definitions. Revenue will allow an occupational pension scheme full communication if the aggregate benefits payable to a member under that scheme and any other scheme relating to the same employment do not exceed €330.00 per annum. The calculation to check if you meet the requirement is carried out before the retirement lump sum is taken and it is generally based on a single life annuity rate with no escalation.

If you have a PRSA, Personal Pension or Occupational Pension, you can also use a second method of calculation. Simply add up all your pension funds after you have taken your lump sum and if the total is less than €20,000, you may be in a position to take the balance of your fund out as a once off taxable payment.

What tax is liable on a Trivial Pension?

If the Trivial Pension is paid using the €330.00 calculation, then the fund is subject to income tax at a rate of 10%. (Company Pension Schemes Only)

If you run the calculation based on the €20,000 rule. Then the balance of the fund is liable to income tax and the universal social charge. If under 65, PRSI is also charged.

What type of pensions can avail of Trivial Pensions?

Company Pension Schemes

PRSA (Personal Retirement Savings Accounts)

Personal Pensions

How do you know if you qualify for a Trivial Pension?

As professional INDEPENDENT pension consultants we would firstly commute your pension entitlement, assuming the scheme rules allow and we would then calculate the maximum approved tax free lump sum benefit before using a selected formula to calculate a Trivial Pension option. Remember pensions are complicated and we urge you to seek professional independent advice in order to ensure you get the most from your pension.
 

If you want to know more information on Trivial Pensions please give the office a call on 01-4546730 or e-mail us on 01-4546730 or e-mail the office on info@paulryan.ie

 

Paul Ryan Independent Pensions & Financial Consultants Ltd is regulated by the Central Bank of Ireland.

© 2017 Paul Ryan IPFC

  • 19 Greenmount House,, Greenmount Office Park Harolds Cross Road, Dublin 6w Ireland
  • Phone: +353 1 4546730
  • Fax: +353 1 4163130
  • Email: info@paulryan.ie
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