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Waived right to lump sum pension..

  • 02-04-2020 4:01pm
    #1
    me4many
    Registered Users Posts: 271 ✭✭


    A little info please..
    It appears I waived my right to take a lump sum of my retirement pension some years ago.
    I am now at pension age and should be receiving pension soon. It will only be about e120 per week..
    My question :
    Is the waiver strictly adhered to or could I request a lump sum now.
    Thanks...


Comments

  • #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,737 Mod ✭✭✭✭Henry Ford III


    me4many wrote: »
    A little info please..
    It appears I waived my right to take a lump sum of my retirement pension some years ago.
    I am now at pension age and should be receiving pension soon. It will only be about e120 per week..
    My question :
    Is the waiver strictly adhered to or could I request a lump sum now.
    Thanks...

    Why would you have done that? Was it to increase a redundancy payment?


  • #3
    coylemj
    Registered Users, Registered Users 2 Posts: 25,479 ✭✭✭✭coylemj


    Henry Ford III wrote: »
    Why would you have done that? Was it to increase a redundancy payment?

    It was probably done to increase the tax exemption of a 'golden handshake' the OP got when leaving a previous job.

    If an employee is departing a job and gets more than statutory redundancy then when calculating any tax liability on the discretionary amount (the excess over statutory), an employee can elect for the 'increased exemption' of up to an additional €10,000 (of the lump sum) tax free if they commit to not taking a lump sum from their pension....

    Your employee might have agreed with their pension provider that they will never receive a lump sum payment. They must inform you of this agreement in order to receive the increased exemption.

    https://www.revenue.ie/en/employing-people/what-constitutes-pay/what-pay-includes/lump-sum-payments.aspx


  • #4
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,786 ✭✭✭The J Stands for Jay


    me4many wrote: »
    A little info please..
    It appears I waived my right to take a lump sum of my retirement pension some years ago.
    I am now at pension age and should be receiving pension soon. It will only be about e120 per week..
    My question :
    Is the waiver strictly adhered to or could I request a lump sum now.
    Thanks...

    The waivers are strictly adhered to, but there can be ways round them. You need to get a good financial advisor.


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