Guide to Pensions
AVC
If you are in a company pension, you can pay contributions on top of the ‘ordinary’ contributions you must pay. You can use the fund from this type of plan to add to your main company pension benefits. Yours contributions are called additional voluntary contributions (AVCs) and you can pay them directly into your main scheme (subject to scheme rules), into a separate AVC plan, or in to your PRSA.
As your company pension plan and AVC are linked, the retirement age for both will be the same. You must take your benefits from your AVC at the same time as you take your benefits from your company pension.
You may have paid AVCs into your main scheme or into a separate AVC plan or into your PRSA. The AVC fund will help to make up the shortfall between the maximum benefits you are allowed under your main scheme and what your main scheme actually provides.
The amount you can take as a tax-free lump sum under your AVC will depend on the rules of your company pension plan. This will depend on your circumstances and how long you have been working for the company. The trustees of your company pension scheme will tell you the maximum tax-free cash you can take based on your salary and service.
If you are a director (controlling more than 5% of the voting rights) and you decide to take 25% of your retirement fund as a tax-free lump sum, you can also take 25% of the fund build up by your AVCs as a tax-free lump sum.
All employees and directors, whatever voting rights they have, have the same options when using the rest of their AVC fund. Depending on whether you contributed your AVCs to your main scheme, or to a separate AVC, or a PRSA,
Warning: The value of your investment may go down as well as up.
Warning: This product may be affected by changes in currency exchange rates.
Terms and conditions apply. Life products are underwritten by Irish Life Assurance plc.
Web design and web development by Tibus