Refund of Pension Contributions

kellyr4

My company recently transferred our pension to a new DC scheme. However, many of us had been paying into a supplementary scheme which has not been transferred to the new scheme. This scheme is now redundant and any further payments into it have been stopped. Steps are now in place for these funds to be returned to the staff who contributed.

My question is, would the refund likely be in the way of a pension contribution (i.e. cannot touch until retirement) or could a cash payment be possible? Whilst I am aware that a cash payment would be subject to tax liability, I could very much do with a cash injection at the moment.

I have asked this question internally but have been advised that the trustees are still working on a decision.

Henry Ford III

If there was any more than 2 years since inception a refund is not possible.

coylemj

If the 'supplementary scheme' was an AVC, it's possible to withdraw 30% of the fund but as you've figured, it's liable to tax and probably USC.

kellyr4

Below link to the issue I referred to. The payments were not named as AVCs but they were voluntary beyond the obligitary pension contributions. I paid into this supplementary fund from 2006 - 2014 so well beyond 2 years


http://www.irishtimes.com/business/transport-and-tourism/aer-lingus-staff-seek-return-of-100m-from-prop-up-fund-1.2175912

coylemj

kellyr4 wrote: »

Below link to the issue I referred to. The payments were not named as AVCs but they were voluntary beyond the obligitary pension contributions. I paid into this supplementary fund from 2006 - 2014 so well beyond 2 years


http://www.irishtimes.com/business/transport-and-tourism/aer-lingus-staff-seek-return-of-100m-from-prop-up-fund-1.2175912

That will have to be collectively negotiated, it's not an AVC scheme by the sound of it. And any refund will be fully taxable since the contributions (I assume) were tax-free.

Shouldn't you be asking the union about this? A unique situation like this has all sorts of issues that people here wouldn't be aware of so you can't really rely on the advice you get here.

Henry Ford III

Regular scheme contributions and over 2+ years. No refund is possible.