Cross-Border IORPs - Authorisation and Approval Forms

Section 37 of the Social Welfare and Pensions Act 2005 introduced a new Part XII into the Pensions Act, 1990 to allow pension schemes to engage in cross-border activity. Directive 2003/41/EC, on the activities and supervision of institutions for occupational retirement provision (IORPs), requires that schemes registered or established in one Member State will be entitled to carry on business and accept contributions from employers based in other Member States in respect of their employees. The home Member State supervisory authority (State where the scheme is registered/authorised) is primarily responsible for supervising the scheme, however the host Member State supervisory authority (State whose social and labour law is applicable to the employment relationship between the sponsoring employer and the members) is responsible for supervising compliance with host Member State social and labour law and disclosure of information requirements.

Part XII requires Irish based pension schemes to apply to the Pensions Authority for authorisation before accepting any cross-border contributions. Each time a scheme wishes to accept contributions in respect of overseas employees further information must be supplied to the Authority so it can make a decision on whether the proposed arrangement is compatible with the scheme. Irish schemes engaging in cross-border activity must abide by the social and labour law and information requirements and any investment requirements applicable to any scheme members in other States.

If a pension scheme wishes to engage in cross-border activity the attached authorisation and approval forms must be completed (including all relevant documentation) and submitted to:

The Pensions Authority
Verschoyle House
28/30 Lower Mount Street
Dublin 2

 
 
Pensions Board
Pensions Board - Engage with your Pension

About the Pension’s Calculator

  • This pension’s calculator is designed to give a broad indication of the level of contributions required to give your desired pension at your retirement age. This calculator only provides a sample indication of the funding contributions for your pension and no reliance should be placed on it.
  • This calculator does not take into account any contributions an employer might make to your pension.
  • Do you know that contributions paid to a pension scheme will benefit from income tax relief at your highest rate of income tax? This calculator takes into account current income tax relief benefits.
  • For a full and accurate assessment of your personal finances and any tax relief you may be entitled to on your pension contributions always consult with a professional financial adviser

The next step is to talk to your employer, trade union, bank, insurance company, building society or financial advisor about starting your pension today.

Pension Calculator Notes:
  1. Assumptions used: Investment return will be 5% per year before retirement and 4% per year after retirement. Salary will increase at 3% per year. Pension will increase at 2% per year in retirement. The State Pension will increase in line with salary increases. Spouse's annuity assumes a 3 year age gap between the Main Life and Spouse. Your personal illustration above makes an approximate allowance for the recently introduced Pensions Levy (i.e. 0.6% of your Fund Value) until 2014 or your intended retirement year if earlier.
  2. Contribution amounts shown will increase each year as salary increases.
  3. The actual pension at retirement will depend on actual investment return and salary inflation up to retirement and on the cost of purchasing annuities at retirement.
  4. Tax relief calculations take account of age related limits on tax relief in any given year as prescribed by the Revenue. Your financial advisor will be able to help you to stay within your limits. The maximum tax relief as a % of earnings are as follows:
         Under 30: 15%
         30 to 39: 20%
         40 to 49: 25%
         50 to 54: 30%
         55 to 59: 35%
         60 and over: 40%
  5. Contributions or benefits may exceed limits prescribed by the Revenue. Your financial advisor will be able to help you to stay within your limits. Budget 2011, introduced a Standard Fund Threshold (SFT) of €2.3 million. Individuals with pension funds in excess of this value as at 7 December 2010 may apply for a Personal Fund Threshold(PFT). When the capital value of pension benefits drawn down by an individual exceed his or her SFT or PFT as appropriate, a tax charge of 41% is applied to the excess fund.
  6. In these net contribution calculations, PAYE & single persons tax reliefs and single persons tax bands are assumed. It is also assumed that no other tax reliefs apply.
  7. The annuity rate used to convert your pension fund at retirement age is a long term average annuity rate, which makes no allowance for the recent gender equalisation ruling. The annuity rate used in your personal illustration above will be shown when you run the calculator.
  8. This calculator takes account of the fact that the State Pension (Transition) will no longer be paid from 1 January 2014. This means that there will then be a standard State Pension age of 66 years for everyone. If you have qualified for the State Pension Transition before 1 January 2014 you remain entitled to it for the duration of your claim (1 year). State pension age will increase to 67 in 2021 and to 68 in 2028