Mercer Oneview Ireland

Trivial Payment Option and you are over 50

If the amount you have in your pension plan is comparatively small, you are over 50 and you are no longer in service with the employer that you originally built up your pension with, you may have the option of taking what is called a trivial payment.

There are two categories of scheme member that can take a trivial payment on wind up. These are as follows:

  1. If you are over the age of 50 and the amount of money in your pension fund would buy you a pension of less than €330 per annum, you may decide to take the current value as a full and final payment from the pension plan. This would be subject to tax and the amount of tax will depend on your salary and service at the date you left.

  2. If you are over the age of 50 and if, after payment of your Retirement Lump Sum from the pension plan, the amount of money remaining in your pension fund is less than €20,000, then you may have the option of taking this as a once off payment from the pension plan. This payment is subject to full Income Tax, PRSI and the Universal Social Charge. You are only entitled to this payment if you send confirmation that you do not have any other pension entitlements that would leave you with a collective pension fund value of €20,000 or more.

  • The information contained in this website is for information purposes only. It should not be taken in any way as advice. It should not be relied upon as an offer to purchase or sell any of the products that are discussed.
  • The value of investments can go down as well as up.
  • Investments or products mentioned on this site may or may not be suitable for you.
  • Before investing or purchasing any product you should always seek independent financial advice. Mercer can provide independent financial advice if required.

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