Ireland Pensions transfer to Non-EU countrie’s International pension schemes-Pension Portability option to India.

Any Indian/PIO/OCI/NRI working in Ireland should know that portability of  pensions are a extremely complex area and before leaving Ireland the Member should sought expert advice on transferring his/her Ireland pensions to India or to any other jurisdictions of his/her choice. In case, the Member is planning to leave Ireland for short period of time, then the Member should look at tax impacts if the Member wishes to continue to contribute to Irish pension account while being in Overseas & also the tax implication on the returns earned by the Irish pension scheme whilst Member is in Overseas.

The protection riders like social security and any other extra benefits or amount of pensionable service the transfer value payment of Ireland pension pot will buy in the receiving pension scheme in other countries will depend on the overseas country.

In case, if an India based Ireland resident moving to the countries that are covered by EU & EEA regulations, it is treated in the similar way as the country’s own residents. In such a scenario then the Member has to fill prescribed forms like E104 etc., that will give the details of social security details to avail benefits claim.

The pension board is obligated to oversee occupational pensions and PRSAs when it comes to transferring pensions to overseas scheme. There are few important requirements under the provisions of ‘The Occupational Pension Schemes & Personal Retirement Savings Accounts (Overseas Transfer Payments) Regulations to be adhered to before to an Overseas transfer being made under the provisions of Pensions Acts. The following are the important requirements to be adhered to:

a)       The trustees or PRSA provider are required to obtain written confirmation from the trustees, custodians, managers or administrators of the overseas arrangement, to which the transfer is to be made, to the effect that the overseas arrangement provides "relevant benefits" within the meaning of  relevant provisions of Taxes Consolidation Act.

b)      The trustees or PRSA provider must be satisfied that the overseas arrangement is approved by an appropriate regulatory authority for the country concerned.

c)      The trustees or PRSA provider of the Irish arrangement must obtain from the member of the arrangement or the PRSA contributor wishing to make the transfer such information as may be approved by the Pensions Board.

India based Ireland expats can make the most by transferring their Ireland pensions to an IRDA recognized pension scheme in India. Many India based Ireland expats like Doctors, engineers & other highly qualified professionals working in Ireland & have contributed & still have been contributing to Personal Retirement Savings Account (PRSA) in Ireland.

To know in detail about the benefits or amount of pensionable service the transfer value payment of Ireland pension pot will buy in the receiving pension scheme in India & also To know more about the options, pension schemes available in India to get your Ireland pensions transferred, I wish to schedule a free, no obligation telephone consultation to discuss ways I can help yourself and any of your colleagues who has accumulated pension fund in Ireland. I can also be reached with the following contact details.

Mr Ravi Kumar. Financial Consultant (Code: 60272381), Exide Life Insurance Co Ltd. Branch- B 21, # 28, 6th floor, Centenary building, M.G Road, Bangalore-560 001.

Cell:     +919844519872, +919980927393
Email:  ravi.sampige@gmail.com

Qualifying Recognised Overseas Pension Scheme.(QROPS): India based Ireland expats can avail tax advantage...

Qualifying Recognised Overseas Pension Scheme.(QROPS): India based Ireland expats can avail tax advantage...: India based Ireland expats can make the most by transferring their Ireland pensions to an IRDA recognized pension scheme in India. Many In...

India based Ireland expats can avail tax advantages by transferring Ireland Pensions to India based Pension schemes

India based Ireland expats can make the most by transferring their Ireland pensions to an IRDA recognized pension scheme in India. Many India based Ireland expats like Doctors, engineers & other highly qualified professionals working in Ireland & have contributed & still have been contributing to Personal Retirement Savings Account (PRSA) in Ireland.

One of the major advantages in transferring the Ireland pensions to a Recognised pension scheme in India is a tax advantage that member enjoys in India. The pension benefits in Ireland are generally subject to many kinds of Iresh taxes like:

Ø  Capital Acquisition tax (CAT)

Ø  Iresh Income  tax

Ø  Universal social charge (USC)

Ø  Pension levy etc

Taxing rate of pension benefits in Ireland differs on different phases & options like, the drawdown phase, accumulation phase etc. Under drawdown phase, there are two options:  pension lumpsum option and Annuity option etc.

For instance, under Annuity option, the income from Annuities is liable to Income tax & Universal Social Charge(USC). Similarly, the taxing rate is different if the pension Member dies before drawing down PRSA benefits.

For one’s information, the rate of Iresh CAT(capital acquisition tax) is currently 33%. Under pension lumpsum option in the drawdown phase, any amount above 575000 Euro’s will be subject to Iresh income tax & universal Social Charge (USC) of upto 48%. The marginal rate of income iresh income tax  is currently 20%.

Insurance & pension industry has open up for private players from the year 2000 in India. Now apart from LIC of India, there are currently more than 25 insurers providing different kinds of pension & insurance schemes to suit the client’s requirements. Mainly following are the kinds of pension schemes available,

1)      Immediate annuity scheme

2)      Deferred annuity scheme

3)      Unit linked pension scheme etc

Immediate annuity schemes are the most popular pension scheme in which the member will start receiving pension income as soon as his Ireland pensions transferred to an Immediate annuity scheme in India. The member will receive annuities till he/she is alive & on member’s demise the entire transferred Ireland pension corpus will be passed on to the member’s nominee as a tax free lumpsum.

In the deferred annuity schemes, the member can leave the transferred Ireland pensions to grow tax free till he/she attains retirement age (45-55 years). In India, the growth rate has not been less than 9% since last 8 years. On attaining the retirement age, the member can withdraw 33% of the total grown corpus as a tax free lumpsum & on remaining 67% (2/3^rd)  the member will start taking pension income till his/her life time. On member’s demise, the entire 2/3^rd  Corpus will be passed on to pension member’s  nominee as a tax free lumpsum.

Once Ireland pensions transferred to a pension scheme in India, the member is not liable to pay Ireland taxes like,

Ø  Capital Acquisition tax (CAT)

Ø  Iresh Income  tax

Ø  Universal social charge

Ø  Pension levy etc.,

To know more about the options, pension schemes available in India to get your Ireland pensions transferred, I wish to schedule a free, no obligation telephone consultation to discuss ways I can help yourself and any of your colleagues who has accumulated pension fund in Ireland. I can also be reached with the following contact details.

Mr Ravi Kumar. Financial Consultant (Code: 60272381), Exide Life Insurance Co Ltd. Branch- B 21, # 28, 6th floor, Centenary building, M.G Road, Bangalore-560 001.

Cell:     +919844519872, +919980927393
Email:  ravi.sampige@gmail.com