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Redundancy / Pension

  • 24-10-2014 1:28pm
    #1
    PCwiggum
    Registered Users, Registered Users 2 Posts: 196 ✭✭


    Hi,
    I have a question regarding taxation on redundancy and how it would affect my pension in the future, much obliged if anyone can assist.

    My situation is this....
    Age 46
    Being made redundant after 25yrs
    We are getting a 3.5 week ex-gratia payment from the company on top of the 2 week statutory payment.
    I have read on the revenue website that if you use the increased tax exemption or calculate it using the SCSB method you must revoke your right to a lump sum from your pension.
    What I'm unclear about is, for how long do you revoke this right? My intention would be to leave my pension as is until I'm at retirement age which for me is 20yrs down the line. (All going well of course). Could I not take a lump sum at that time if I used the increased tax benefits now?

    I phoned the revenue to clarify and after waiting on hold for 30 mins I finally got the reply "oh I'd imagine so, I'm not entirely sure"


Comments

  • #2
    Alan Shore
    Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    - you are not a member of an occupational pension (superannuation) scheme or
    - you irrevocably give up your right to receive a lump sum from the pension scheme and
    - you have not made any claims in respect of a lump sum received in the previous ten tax years.

    For the SCSB it's the Net Present Value of the pension lump sum I think


  • #3
    HAMMERCURRENT
    Registered Users, Registered Users 2 Posts: 254 ✭✭HAMMERCURRENT


    Alan Shore wrote: »
    - you are not a member of an occupational pension (superannuation) scheme or
    - you irrevocably give up your right to receive a lump sum from the pension scheme and
    - you have not made any claims in respect of a lump sum received in the previous ten tax years.

    For the SCSB it's the Net Present Value of the pension lump sum I think

    If you have a portable PRSA and not a company pension, do you also give up your right to receive a lump sum if you use the increased tax exemption?


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