Corporate Pensions

Executive Retirement Plan

An Executive Retirement Plan is set up by an employer/director(s) to provide pension benefits for themselves at retirement. The main advantage of this plan is that the company contributes to it on their behalf without the employer/director having a liability to income tax or benefit in kind. Company contributions can be offset against corporation tax and the funds enjoy tax free investment growth. Any contributions directors make receive tax relief at the highest personal rate of income tax.

Group Pension Scheme

A Group Pension Scheme is one that is set up by an employer to provide pension and other benefits for employees. The main advantage of this type of plan is that your employer must make a contribution to it, even though the amount may be small. Your employer usually sets up the rules of the pension plan within revenue guidelines, and appoints trustees to oversee it. Your employer automatically takes your contributions from your salary, so you get tax relief automatically because you do not pay tax on your pension contributions.

The contribution made on behalf of the plan member builds a fund which can provide the following benefits for members on retirement:

  • A pension
  • A tax-free lump sum (subject to limits set by the Revenue Commissioners)
  • A pension for the members partner/dependants

Small Self Administrated Pension

A (SSAP) allows company directors to control their retirement funds without the requirement to use an insurance company.