Group Schemes
Is your company pension scheme fit for purpose? Is it designed to help your employees plan for their retirement. Have you created a group pension scheme to enable you and your employees to avail of tax-reliefs against contributions? At Allied Financial, Independent Financial Broker, we ask these questions.
Company pensions provide clients with control over how they invest their funds by offering a wide range of investment options to suit all risk appetites.
Your Group Scheme should provide you with:
- Wide range of investment options
- Generous Tax relief contribution limits
- Retirement Lump Sum
- Choice of Income options in retirement
- Inheritance planning
- Tax free growth on fund
What is next?
If you are involved in overseeing a group pension scheme, Allied Financial has over twenty years experience in identifying and recommending the correct Company pension scheme to suit you and your employees future needs, offering you financial advice. Based in Ballina, Co Mayo, contact the team at Allied Financial.
EMPLOYERS OBLIGATIONS
WHAT ARE YOUR OBLIGATIONS AS AN EMPLOYER?
As an employer and to ensure compliance with the provisions of The Pensions Act 1990, you will have to offer the facility to your employees to take out at least on Standard Personal Retirement Savings Plan if
- You do not currently have a pension scheme in place.
- You have employees that are not included in the pension scheme.
- You have imposed a waiting period for membership of the pension scheme of more than 6 months.
- you do not allow employees take out an Additional Voluntary Contribution (AVC) plan within the scheme rules.
If you currently have a pension scheme where all your employees are entitled to membership, you may not be affected by the legislation.
HOW TO ESTABLISH A PRSA PENSION PLANFOR YOUR EMPLOYEES?
In order to establish a Pension Plan for your employees, you are obliged to
- Nominate a company (or companies) to provide access to at least one standard PRSA for your staff. This company must be a PRSA provider approved by the Pensions Board.
- Communicate this choice to your staff and inform them about the PRSA facility you have decided on.
- Allow your employees access to this provider, either by giving the provider permission to talk to your staff or by allowing your staff time to talk to that provider.
- Write to your employees offering the option to deduct regular PRSA payments directly from their pay. If your employees choose this method of payment, income tax relief will be immediate.
- Ensure that the PRSA contract is approved under Part 10 of the Pensions Act 1990.
You do not need to contribute, but it is extremely tax efficient if you decide to do so.
WHEN YOU HAVE ESTABLISHED A SCHEME, WHAT ARE YOUR OBLIGATIONS?
Once the scheme has been established, you are obliged to
- Send any payments deducted from the employees’ salaries to the PRSA provider within 21 days from the end of the month in which they were deducted. The employee may opt to pay personal contributions from his own bank account in which case this requirement does not apply.
- Send any payments you make yourself to the provider within the same timeframe outlined above.
- Notify the provider and employee in writing, at least once a month, of the payments deducted from employees’ salaries and any payments made by you. This relates to those contributions paid between the last such statement and this one.
DOES AN EMPLOYER HAVE TO CONTRIBUTE TO THE PLAN?
- You do not have to contribute to the plan
- And you do not have any responsibility to the employee in relation to the performance of their chosen fund or their choice of investments
WHAT TO DO NEXT IF I DO NOT HAVE A PENSION SCHEME ALREADY ESTABLISHED?
If you do not have a Pension established for your employees you are in breach of the provisions set out in the Pensions Act and you are liable to be prosecuted. In order to avoid this, we recommend that you contact one of our qualified pension advisors who will arrange a Designated PRSA for you. This service can be free of charge and will give you the peace of mind in knowing that your obligations have been fulfilled.
Your Possibilities
As a non-tied Broker, we can source the best options in the market for you, to help support you in your life choices, whilst creating a robust investment strategy.
If you would like a quick check of your own personal pension, just submit this 2-minute questionnaire below and we can do a no-obligation quick review of the same. Of course, if you would like to start a pension, you have come to a good place too.
New Pension Enquires
If you are considering taking out a new pension complete this form and Allied Financial will analyse your profile and revert with some options. All Information is received in the strictest of confidence.
Current Pension Review
In supporting and advising you on your current pension plan, Allied Financial will review your data and compare it to other similar pension plans, to ensure you have the best policy available to you. All Information is received in the strictest of confidence.
Talk to us about
Types of Pension | Pension Calculator | Pensions Risk Profiling | Compare Pensions | Reduce Income Tax | Group Scheme
Ready to have a conversation?
If you’d like to have an informal, no obligation, conversation about how we can help you Start Saving today, please get in touch.
New Pension Enquires
If you are considering taking out a new pension complete this form and Allied Financial will analyse your profile and revert with some options. All Information is received in the strictest of confidence.
Current Pension Review
In supporting and advising you on your current pension plan, Allied Financial will review your data and compare it to other similar pension plans, to ensure you have the best policy available to you. All Information is received in the strictest of confidence.