Departing Intel employees can avail of a number of options to maximise the return on their pension entitlements.
Pension fund members can:
- Accept a deferred Intel pension and take it at their normal retirement age
- For those over 50 years, they can accept an immediate lump sum, based on salary and service with the added benefit of an immediate pension.
- Transfer to a Buyout Bond with an Irish Life Assurance Company.
These are not the same options that are available to Intel employees in the UK as they do not provide as large a tax free payment as is possible and Irish legislation also does not allow for a flexible drawdown and ownership of the former employees’ remaining funds.
- The Intel U.K pension website confirms that Intel has arranged for UK deferred members to accept a tax free lump sum together with ownership and management of their residual funds with flexible drawdown income payments. The arrangements are being co-ordinated by Legal and General Life Assurance Company. The U.K website also provides additional useful information.
- This facility is not available to ex Intel employees who have a deferred pension in Ireland. However, International Pension Transfer Consultants Ltd (IPTCO), a specialist Irish pension company, has developed a similar pension product to that available in the UK, along with International Pension Trustees who have offices throughout the UK, Europe, The Middle East and Hong Kong.
Following extensive negotiations with the Irish Revenue Commissioners, IPTCO has secured Revenue Approval for transfers from Irish Defined Benefit Pension Schemes to Personal Pension Plans (SIPPS), as they are called, in Malta.
The benefits of a Malta transfer are considerable;
- A 30% tax free lump sum (up to €200,000) drawn from the Intel transfer value for those over 50 years plus. This tax free payment may be drawn in addition to the severance package on offer.
- A highly regulated financial environment.
- The balance of 70% (less agreed fees) is fully owned by the pension fund owner and can be invested in;
- Stocks and shares in individual companies
- Unit Investment Trusts
- Open ended companies
- Commercial Property
This can be drawn down at a rate of between 5% and 7% per annum per annum, as required, by the pension fund owner.
- On death the value of the residual fund is passed tax free to a spouse or alternatively in accordance with directions under a will.
If you are interested in finding our more about the IPTCO Self Invested Pension Plan then please call us on 01 6815293 or send email us email@example.com. We’d be delighted to discuss this in more detail with you.