AIB staff pension scheme trustees have just reported to members that scheme assets in June 2015 were €4.43 billion, an increase of €1.68 billion from €2.75 billion in June 2012. Following on from this the scheme’s trustees have now decided to reduce the scheme’s risk assets from 77.3% at June 2012 to 46.7% in December 2015.
The AIB Pension Scheme is now in a stronger position for both existing employees and deferred pensioners.
That means you, if you have accepted a severance package but cannot access your AIB pension until you reach age 63.
The trustees also confirmed in their recent report that even though the financial position of the scheme has improved, early payment of deferred pensions will still not be permitted.
So what should you do if you are an ex-AIB employee with a deferred or frozen pension?
The number of deferred pensioners has increased to 6,292, and will soon surpass the 6,756 employees who still work there. None of them are allowed to apply for immediate payment of a pension income!
UK pensions expert John Ralfe wrote in the Financial Times on 29 April that deferred members of Defined Benefit pension schemes should consider taking a transfer value from the main scheme – but where do they go?
Good News For AIB Employees
The good news for deferred AIB employees is that a solution now exists which allows those deferred pensioners to access their recently increased pension transfer value from the AIB scheme and set up a personal pension in their own name.
Irish pension law does not enable such a transfer but International Pension Transfer Consultants (IPTC), a specialist Irish Pension Company, has recently agreed a procedure with the Irish Revenue Commissioners which allows ex-employees of AIB to move their deferred pension to Malta (a member of the EU) and retire the pension under the Maltese rules.
This is really good news as the Malta retirement rules allow those over the age of 50 to immediately access 30% of their pension fund tax-free up to €200K. The balance of the 70% (less agreed fees) is fully controlled by the pension fund owner and can be invested in accordance with their wishes.
Additionally an income can be drawn down at a rate of between 5% and 7% per annum and on death the residual fund can be transferred to a spouse tax-free or in accordance with directions under a will.
What To Do Now
If you are interested in finding out more about the IPTC pension transfer plan and how to immediately access 30% of your AIB pension fund, contact us on 01-6825293 or send an email.