If you are a director of a company, the company can establish an individual pension arrangement for you or any other directors/key personnel.
This is known as an Executive or Director’s Pension Plan and it works in exactly the same way as a company pension scheme except that there is only one member. The key additional benefits are:
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Valued staff can be provided with more generous benefits than other employees. Director’s can make much higher contributions to a pension plan than employees and generally the company would make the contributions rather than personal contributions from the director.
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Where the executive does not own more than 5% of the shares in the company, the tax-free cash sum drawn at retirement can be up to 1.5 times the executive’s final annual earnings provided they have at least twenty years service with the company.
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If you own more than 5% of the shares in the company, the tax-free cash sum drawn at retirement can be up to 25% of the ‘pension pot’.
Maximum funding rates to retirement age 60, as a % of initial salary.
A.N.B.
% of Salary - Male
% of Salary - Female
30
124%
111%
35
142%
127%
40
168%
151%
45
211%
189%
50
292%
263%
55
505%
454%
Approved by the Revenue Commissioners. Assumes no existing Pension Assets.
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Cregan Kelly Financial Services is a registered name of Finance Life & Pensions Limited and is regulated by the Central Bank of Ireland as an Authorised Advisor.
