Statutory Guidance

This section contains guidance (known as “statutory guidance”) issued by The Pensions Board and prescribed by the Minister for Social Protection under the Occupational Pension Schemes (Funding Standard) Regulations 1993 to 2009 (as amended or replaced).

Statutory guidance has the force of law and shall not be altered without the prior consent of the Minister for Social Protection. It should be read in conjunction with the provisions of the Pensions Act 1990, as amended and Regulations made thereunder to which it relates.

  • Section 42 guidance prescribes the manner in which the actuary may value pensions in payment when completing an actuarial funding certificate and/or funding standard reserve certificate, where a scheme holds sovereign bonds and/or sovereign annuities.
  • Section 47 guidance in relation to employer undertakings prescribes the manner in which trustees may include an unsecured undertaking as a scheme resource for the purpose of determining whether the scheme satisfies the funding standard reserve.
  • Section 47 guidance in relation to contingent assets prescribes the requirements which a contingent asset must satisfy to be included as a scheme resource for the purpose of determining whether the scheme satisfies the funding standard or the funding standard reserve.
  • Section 49 guidance prescribes the requirements with which the actuary must comply when certifying a funding proposal; the circumstances in which The Pensions Board may specify a later date for submission of a funding proposal; the circumstances in which trustees are not required to submit a funding proposal; the trustees’ obligations on failure to comply with a funding proposal; and the circumstances in which The Pensions Board may declare a funding proposal invalid.
  • Section 50 guidance prescribes the requirements with which trustees must comply when making an application to The Pensions Board under section 50 of the Pensions Act 1990, as amended.

To ensure that you have an up-to-date and unaltered copy of this statutory guidance you should download it directly from www.pensionsboard.ie.

 
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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