Pension payout query

Mr Disco

couple of questions on pension drawdowns. Is it possible to drawdown monthly? Are drawdowns gross of tax and tax for the year needs to be calculated subsequently? As in there is a pension PAYE type arrangement?

Geuze

Do you mean a drawdown from an ARF?

Based on the ARFs that I have experienced, drawdowns from an ARF can be annual or monthy.

They are taxed at source like any other income, the life assurer is listed like being your employer.

Mr Disco

Yeah from arf. Thanks

sbs2010

What if you have two or three pensions from several previous employments - how does each payout institution know what your overall situation is?

They must give you your gross amount and you have to do a tax return, no?

Geuze

I presume if no SRCOP or tax credits are allocated to that employer, then the former employer must apply 40% tax to the pension.

It is up to the taxpayer to allocate SRCOP and tax credits between the various incomes.

Or else, do an annual tax return to balance everything.

Mrs OBumble

https://www.boards.ie/discussion/comment/123571264#Comment_123571264

The same way that it works if you have two or three simultaneous jobs: each income is registered with Revenue, and tax-credits are assigned between them.

The J Stands for Jay

https://www.boards.ie/discussion/comment/123571264#Comment_123571264

No

The J Stands for Jay

You assign tax credits and cut offs to the pension providers as you see fit. They pay the relevant tax based on the information sent to them by Revenue.

cityboyjim

Is it legal for an employer to stop paying the Death in Service part of an employees pension while the employee is on sick leave.Does the employer need to inform the employee that he is doing this . If this is done in error is the employer liable in the case of the employee passing away while still registered as an employee of the company .Thanks for reading .

Henry Ford III

Employee is still "in service" so that sounds a bit odd.

Are pension contributions still being paid?

cityboyjim

Sadly the person in question passed away while on sick leave .The death in service part of the pension had not been paid for months previous . Should legal advice be sought and if so what type of legal specialist should be hired to investigate the legality of this .The employee was fully certified sick and registered as an employee right to the end of life .

3DataModem

@cityboyjim

There is a very specific question that is important to answer your question; was the employer paying the employee during the sick leave? Typically the scheme rules (and they can vary) require the employee to be being paid by the employer during the sick leave to entitle them to death benefits to continue.

The best bet is for the deceased personal representative to get a copy of the scheme rules pertaining to the pension, and take a look.

Then a written complaint to the employer AND the trustee of the pension scheme should be the next step.

Then the best bet is a complaint to the financial services ombudsman (but they will require a complaint to a FCA regulated entity first) or the pensions ombudsman. You can get legal advice, but the ombudsman is pretty good (in my experience).

You say "The employee was fully certified sick and registered as an employee right to the end of life." … but as above what is likely to matter is who was paying them their sick pay.

blackbox

The pensioner would usually have completed an "expression of wish" form stating who they wanted the payment to go to if they died (assuming there was a death in service provision).

Have you been in communication with the pension provider. There should be a lot you can explore before having to engage solicitors.