We can help you tailor a pension arrangement that suits both you and your employees’ needs. While there is a legal requirement to provide employees with access to some form of pension, a good pension plan can also form an important part of any remuneration package in actively encouraging employees to consider a long term future with your company.
One of the key advantages of a pension is the generous tax relief available.
As an employer you benefit from tax relief on any contributions that you make to your employees’ pension plan as these can normally be fully offset against Corporation Tax as a business expense. The net cost of a company contribution of €1,000 is effectively €875.
Employees can normally avail of generous tax relief on their contributions of up to 40% (subject to Revenue maximum limits) so that if they paid €100 into their pension each month the actual cost to them could be only €60. Employees also benefit from tax free growth on their investment, and a tax free lump sum at retirement.
It is important to set up a pension arrangement that takes your circumstances and requirements into account. We can help you set up an arrangement tailored to your needs. Factors that could be considered include:
- Employer Contributions: You don’t have to make contributions to a Group PRSA arrangement so this option is suitable if you are providing your employees with access to pension provision but don’t plan to make a contribution yourself.
- Investment Choice: You can decide whether or not to offer investment choice to your employees and if so, decide on the range of funds to make available. You can also offer a default investment strategy which is the fund into which contributions will be invested if an employee does not wish to make the investment choice themselves.
- Additional Protection Benefits: You may have the option of adding additional protection benefits to the pension arrangement, for example life cover, income protection cover or premium protection cover. Depending on the age profile of your workforce, it may be relatively inexpensive to add these benefits and they will be highly valued by your employees.