Retirement Benefit
Q. What benefits can I receive at retirement?
A. When you retire, your retirement account will be used to provide your benefits. You can tailor your benefits to what best suits you and your family (within certain limits). Before you decide, you may want to get independent financial advice to help you make the right decision for your circumstances.
The benefits you can choose from include:
A pension payable for life
A lump sum (currently paid tax-free) in addition to a reduced pension payable for life
A pension for your spouse on your death
Increases to your pension each year
If you are married and still living with your spouse, you must select a pension which will provide a spouse’s pension on your death of 50% of your own pension.
Q. How much will my pension be?
A. The exact amount of your benefit cannot be guaranteed in advance, as it depends on a number of factors:How much money you have built up in your retirement account: this will depend on the amount of contributions paid in by you and your employer and the investment returns. The rate for t converting your retirement account into annual pension: the rate for converting your retirement account into an annual amount of pension – known as the ‘pension conversion rate’ is based on interest rates and actuarial factors, and will also vary depending on the type of pension you choose.
Your age at retirement: the younger you are when you retire, the more expensive your pension will be to provide. This is because it is being potentially paid for longer.
Q. How much cash can I take at retirement?
A. Under the rules of the scheme you are entitled to take 25% of your fund as a tax free lump sum. The balance must be used to purchase a pension, however the Revenue Commissioners will allow you to take the balance as a taxable lump sum if it is under €20,000. Other pension arrangements if any (excluding the state pension) must be taken into account. If you paid additional voluntary contributions (AVC’s) you may be able to take all of them tax free, subject to Revenue restrictions.
Q. Who provides my benefits?
At retirement, your pension benefits will be provided by the Scheme. The Trustee will then be responsible for paying your pension each month.
Q. How do I claim my retirement benefits?
A. Provided we have your correct date of birth and home address on file we will contact you three months before your 65th birthday with details regarding your entitlements.
Q. What if you don't have my date of birth or home address on file?
A. It is very important that you keep the Trustee and the administration team advised of your current address and contact details. The Trustee can only correspond with your last known address on its records.
Q. How long will it take to process my claim?
A. This will depend on the option chosen. We process once off tax free lump sums weekly. Pensions and taxable lump sums are processed separately through our monthly payroll on the first week of each month.
Q. Why do I pay tax on my pension?
A. Under Revenue rules all pensions are classed as taxable income.
Q. Do I need to do anything about my tax?
A. Yes, if you have chosen to receive a monthly pension you will need to contact your local tax office and apply for a Certificate of tax credits and standard rate cut off point, naming CWPS as your employer, otherwise we will continue to tax you at the emergency tax rate.
If you have chosen to receive a once off taxable lump sum this amount will be taxed at the emergency rate of deductions and a P45, detailing the amount of tax deducted, will be forwarded to you with your cheque. You can then claim back any tax you may be due directly from your local tax office. Further details regarding this process will be forwarded to you at the time of payment.
Q. Can my monthly pension be paid into my back account directly?
A. Yes, you can forward all your bank details to our Pension Payroll department and they will look after this for you.