Trust RAC Fees

Trust RACs (Fees) Regulations 2007 SI 768 of 2007

Since 1 January 2008, annual fees are payable to The Pensions Board in respect of trust RAC schemes.

In general, the fee will be based on the number of members in respect of whom the trust RAC scheme received a contribution in the trust RAC year preceding the year for which the fee is payable (fee year). The annual fees will generally fall due for payment on 31 March each year.

Since February 2011 the Pensions Board only accept payments for occupational pension scheme and trust RAC fees through the online portal which may be accessed at https:/data.pensionsboard.ie

Where the trust RAC commenced during the 12 months preceding 1 January in the fee year, the fees payable to the Board shall be based on the number of members in respect of whom the trust RAC received a contribution in the first trust RAC year. The annual fees for such trust RACs will fall due for payment on the earlier of three months from the end of the first trust RAC year or 31 December in the calendar year.

Example:
Fees are based on the number of members who have made contributions to the trust RAC, in the trust RAC year for which the fees are payable. If this is:

  • 500 or less members, then the fee due will equate to €8.00 per member
  • greater than 500 but less than 1000 members, then the fee due will equate to a flat fee of €4,000
  • greater than 1,000 members, then the fee due will equate to €4.00 per member.

If the trust RAC has been in operation for more than 12 months prior to 1 January 2008, the fees will be payable not later than 31 March 2008 and will be based on the number of members who paid contributions in the trust RAC year ending in 2007.

If the trust RAC had commenced on 1 March 2007, fees will be payable in respect of the members who contributed to the trust RAC between 1 March 2007 and 28 February 2007, being the first trust RAC year, and those fees will fall due for payment on 31 May 2008.

No fees are payable in respect of members who have not made contributions to the trust RAC in the trust RAC year preceding the fee year.

Trust RACs in wind up are generally excluded from the requirement to pay fees.

 
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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