Protecting your SSASets

Aidan McLoughlinBCL Solr FITI TEP AIIPM

Managing Director

Independent Trustee Company

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Agenda

1. Introduction2. Recent Developments3. Background4. Planning Opportunities

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Threats to Pensions

Fall in Investment ValuesReduction in tax reliefsExtension of retirement agesCollapse of Banks and the consequent impact on depositsThe Quinn Insurance affair and its impact on insured pensionsDevelopments in Family LawBrendan Murtagh case

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Tax Relief Restrictions

Allowance for self employed reduced from €275k to €150kIncome leviesHigh Earner restrictionPRSI on ARF drawdownsInsurance Levies33% tax relief rate

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National Pensions Framework

33% tax rateAuto –enrolment – contributions and benefits administered by

Revenue?Extension of retirement age

Impact on ARF

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Deposits

Bank Guarantee Investment pre- September 2010 Term Deposit

Deposit Guarantee €100k Self Administered Schemes only Aggregation?

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Insured Pensions

Irish Life & AngloQuinn InsuranceAssets on Balance SheetSolvency of InsurersDiversify or avoid?

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Family Law developments

Pension Adjustment Orders Revisit on divorce

ARFs Property adjustment orders?

Civil Partnership Act

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Brendan Murtagh case

Receiver appointed re ARFNo published JudgementDegree to which the issues was defendedMarket Concern

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Background

OPS Section 774 – under “irrevocable trust” Section 772 – “no pension is capable in whole or in part of surrender, commutation or

assignment” NOTE: Buy-out Bonds

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Background

Personal Pension An insurance contract – not under trust Section 784 – must include “provision securing that no annuity payable under it shall

be capable in whole or in part of surrender, commutation or assignment”

Note: Group Schemes

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Background

PRSA contract not a trust Section 787K – PRSA must include “provision securing that no annuity payable under

it shall be capable in whole or in part of surrender, commutation or assignment” Section 92 Pensions Act – “No legal or equitable charge may subsist over the PRSA

assets”

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Background

ARFs Legal status not defined in legislation Client is clearly the beneficial owner Original ARFs involved direct tax payment by owner

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Planning

Move towards higher protection Occupational pension scheme SSAS v Insured

Switch of Employer Waiver of benefits under pension schemeAddition of new members to dilute benefitsPension/property adjustment orderUse of Unit Trust Structure in ARFs and PRSAs

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Planning

Multiple pensionsAnnuity purchaseInvestment in Tracker Funds/Private EquityCreate transfer/ distribution systemInvest in AMRFMove pension overseas

Questions?

Independent Trustee Company is regulated by the Financial Regulator