The final type of occupational pensions concern “key employees” – usually, this means directors of a company.
A key employee may be the beneficiary of an executive pension set up by a company, or they may choose to establish their own Personal Retirement Savings Account (PRSA).
PRSAs are long term pension plans that allow workers to invest in their own pension via a PRSA provider.
They allow you to avail of tax relief on your PRSA contributions until retirement, when Revenue subject withdrawals to a PRSA tax.
Executive pensions are not constrained by the same limits as personal pensions, meaning they can amass a significantly higher value over time.
Both executive pensions and PRSAs may allow you to withdraw a tax free lump sum when you turn 50.
Different pension schemes allow for different benefits –your fund may qualify if it is an occupational pension scheme (defined benefit or defined contribution), or an executive pension.
The easiest way to figure out whether or not you qualify is to get in touch with a specialist financial advisor who can offer you a free consultation on your position.