Page 8 - Group Insurance and Retirement Benefit IC 83 E- Book

When you retire, the total fund accumulated in your name becomes available to the

trustees to provide benefits. The maximum benefits that can be provided are dictated by
the Revenue Commissioners‘ rules (see Section 5). For those retiring at normal pension

date, having completed at least 20 years‘ service, the maximum lump sum is 12 times
salary (or ―final remuneration‖ calculated on the most favorable definition the scheme

rules and Revenue regulations will permit).

The balance of the fund available for the individual has to be applied to purchase

pensions (for the scheme member and also perhaps for his/her dependants).The amount
of pension available after the lump sum has been taken will be dictated by

(a) the value of the accumulated fund and

(b) the cost of purchasing an annuity/pension at the time of retirement.

Neither of these can be predicted in advance. The best that can be done in the case of
someone who is years away from retirement age is to make a reasonable estimate of what

might be available. Such an estimate would be based on assumptions regarding future

fund performance and annuity rates. It is important to review these regularly, to measure
actual performance against the assumptions. That way, changes can be made to the rate of

contribution if needed.
What Happens If I Die In Service?

If you die in service, the fund that has accumulated for your pension will form part of the

overall death benefit provided by the scheme – how that is calculated will be determined

by the rules of the scheme itself. Death benefits may be paid as tax-free lump sums
within certain limits, with any balance going to purchase pensions.

What Happens If I Die After Retirement?

That will depend on the choices you made at the point of retirement to provide for