Complete
Solutions
Approved Retirement Fund 1 and Approved Minimum Retirement Fund 1
Complete Solutions Approved
Retirement Fund 1 and Approved
Minimum Retirement Fund 1
To allow you to control your retirement fund
Aim and give you options to invest in the stock
market and property.
Low to very high depending on the option or
Risk mix of options you have chosen.
Capital No.
protected No
Funds wide Your Complete Solutions Approved Retirement
available range Fund 1(ARF 1) and Approved Minimum Retirement
Fund 1 (AMRF 1) plan offers you a wide range of
funds to choose from. Please see your separate
Fund Guide for a full list of funds.
You can invest for as long as you like -
Time
period 5 we recommend five years or more.
Jargon- Yes.
free
Committed to Plain English
There is no financial jargon in this booklet and everything you need to
know is written in an upfront and honest way. We are delighted to have
received the ‘Best in Plain English’ Award from the Plain English Campaign. This
award reconises our contribution to communicating clearly. For this award, we
were chosen ahead of 12,000 other organisations from 80 countries.
Where we say ‘Complete Solutions ARF 1/AMRF 1’ in this booklet, we are referring to either an
ARF or AMRF depending on the plan you have.
This booklet must be read together with your Fund Guide before making an investment.
All information including the Terms and Conditions of your plan will be provided in English.
The paper in this booklet came from a managed forest.
The information in this booklet is correct on 18 March 2011 but may change.
Complete
Solutions ARF 1
and AMRF 1
A clear plan with a unique
range of options so you can
control your investment.
Contents
Page
1 Introduction 3
2 Approved Retirement Funds 6
and Approved Minimum Retirement Funds
3 Your Complete Solutions ARF 1 / AMRF 1 9
4 Complete Solutions ARF 1 / AMRF 1 investment options 12
5 Withdrawal options 15
6 Charges 20
7 Great service 23
8 Your questions answered 25
9 Glossary 31
2
1
Introduction
3
Retirement is your time. It is the start of a
new and exciting part of your life and you c take the rest of the fund as taxable cash.
have the chance to enjoy the freedom it
presents. You can control what you want to
do and when you want to do it. This booklet will give you
more information on
Until now, your investment goal was approved minimum retirement
probably to save the biggest possible nest funds (AMRF) and approved retirement
egg for your retirement by using a pension funds (ARF) and will show you how
plan. When you retire, you will need to make they are different to buying an annuity.
sure that you use this retirement fund wisely.
You want to give yourself financial security, We explain about annuities in a
so that you can get on with enjoying a very separate booklet, 'Your options at
fulfilling retirement. retirement'. You can ask us for a copy of
this.
The most important decision you will have to
make is what to do with your retirement You should talk to your financial adviser
fund. about the taxable cash option.
When you retire, you can usually take a part You should consider all options
of your pension fund as a retirement lump carefully as there are advantages and
sum. You may be able to take some or all of disadvantages to these options,
this retirement lump sum tax-free. Then, if depending on your investment
you meet certain conditions, you may be approach and where your priorities lie
able to choose what you want to do with the in terms of goals and investment risk
rest of your fund. You can: during your retirement.
a use it to buy an annuity (that is, a regular You can find a full list of the funds
income for the rest of your life); available on your Complete Solutions
ARF 1 and AMRF 1 plan in your
b re-invest it in an approved minimum separate Fund Guide which you should
retirement fund or approved retirement read before you decide to invest.
fund; or
4
Is this plan suitable for me?
This plan might suit you if you: This plan might not suit you if you:
are happy with the charges on this plan are not happy with the charges on this
and accept that the value of your fund plan and do not accept that the value of
could fall as well as rise; your fund could fall as well as rise;
are happy with the choice of funds are not happy with the choice of funds
available on this plan; available on this plan;
would like to take a regular withdrawal want a regular income guaranteed to
up to certain limits; last you for life;
have a guaranteed pension income for don’t have a guaranteed pension
life of ¤18,000 or have ¤119,800 to set income for life of ¤18,000 or have
aside for an AMRF or annuity; ¤119,800 to set aside for an AMRF or
annuity;
want to pass on the money in your want to take out an annuity when you
ARF/AMRF to your family when you die. retire.
5
2
Approved
retirement
funds and
approved
minimum
retirement
funds
6
These amounts will change when the State
What is an approved
Pension (Contributory) rate changes.
retirement fund (ARF)?
These amounts are correct in March 2011.
An approved retirement fund is a special
You will find full details of these conditions
investment fund which can give you
on page 26.
flexibility in terms of how you use your
retirement fund. With an ARF you manage
and control your retirement fund and can
What is an approved
invest it in a wide range of different
minimum retirement
investment funds. You can also make
fund (AMRF)?
You must take out an AMRF if you have
withdrawals as you need them. And
chosen the ARF route but do not have a
because you own your fund, you can leave
guaranteed pension income for life of at
it to your dependants when you die.
least ¤18,000 a year already in place. See
the ARF section on this page.
Before you invest in an ARF, you must
meet one of the conditions below (unless
The main difference between an AMRF and
you have inherited an ARF or AMRF from
an ARF is the restrictions placed on
your husband or wife).
withdrawing your AMRF fund. You can
withdraw any gain you make within the
• You must set aside ¤119,800 in an
AMRF over and above the original amount
approved minimum retirement fund
you invested. You also can buy an annuity
until you reach 75.
with the fund at any stage during the term of
your AMRF plan.
• Or, you must buy a pension (annuity)
with this money (¤119,800).
However, until one of the following happens
(whichever is first) you cannot make
• Or, you must have a guaranteed
withdrawals from the original amount you
pension income for life of ¤18,000 a
invested.
year.
• You start receiving a guaranteed pension
The guaranteed pension income for life of
income for life from other sources
¤18,000 and the ¤119,800 AMRF
(currently ¤18,000 a year), or
requirement are linked to the annual State
Pension (Contributory) rate for a single
• You reach age 75.
person.
7
At this stage your AMRF will become an
ARF. You may have to pay income tax, PRSI,
the Universal Social Charge (USC) and any
other charges or levies (tax) due at the time
on the withdrawals you make.
The investment funds you choose and the
plan charges are the same for the Complete
Solutions ARF 1 and the Complete Solutions
AMRF 1.
Example of how an AMRF
and ARF work together
Your retirement fund ¤500,000
Retirement lump sum
(for example, 25%) ¤125,000
Rest of investment ¤375,000
Invest in an AMRF ¤119,800
(if you do not have
a guaranteed pension
income for life of ¤18,000
a year)
Invest the rest in an ARF ¤255,200
8
3
Your Complete
Solutions
ARF 1 / AMRF 1
9
• the growth you have made; and
With a Complete Solutions • your regular withdrawal from the fund
ARF 1 / AMRF 1, you can (ARF only).
manage and control your retirement
fund to suit your needs. Below we You can also check the value of your fund
describe some of the features of our at any time by phoning 01 704 1111 or
Complete Solutions investments. checking online at www.irishlife.ie.
Planning for inheritance
A wide range of funds tax
Complete Solutions offers a wide range of The money in your ARF or AMRF is your
investment options. Because everyone has money. When you die you can pass it on
different needs and views on how they to your family or other beneficiaries. Your
would like to invest their retirement fund, tax adviser can explain the tax effects
each option has a different level of which may arise if you die while an AMRF
expected returns and the risk of ups and or ARF is in place. We have outlined a
downs. summary on page 28.
For a full list of the funds available on your Access to your money
Complete Solutions ARF 1 and AMRF 1 (ARF only)
plan, please see your separate Fund Your ARF is your money. You can take cash
Guide. lump sums from your fund whenever you
need to. If you do take cash out, you will
Warning: This Complete Solutions have to pay tax due.
product may be affected by
changes in currency exchange Taking a regular
rates. withdrawal (ARF only)
You can choose to take a regular
withdrawal from your ARF based on a
Regular updates percentage of your fund value. Your
Each year we will send you a statement withdrawal can be paid to you every
showing: month, every three months, every six
months or every year. We will take any tax
• the original value of your fund; due before we pay this to you. It will be
10
applied at the highest rate, unless you
Withdrawing the funds
send us a certificate of tax credits and
from your AMRF
standard rate cut-off point for the year.
You can withdraw your original investment
when you reach age 75. You are allowed
We will pay your chosen withdrawal (less
to withdraw any gain you make before that
any tax due) direct into your bank account
date which is over and above the original
or through the post by cheque.
amount. As a result, it is not possible to set
up a regular withdrawal from your AMRF.
If you do not take a regular withdrawal, we
must take a minimum withdrawal amount
You can, at any stage, use your Complete
of 5% of the value of your fund in
Solutions AMRF 1 to buy an annuity
December every year and pay this
(which is a guaranteed income paid for
withdrawal to you, less any tax due at
life). When you reach age 75 or meet the
the time. This is automatically paid to you
guaranteed pension income for life
from the year you turn 61. We explain
requirement, your Complete Solutions
this under ‘Minimum withdrawal
AMRF 1 will become an ARF and you can
amounts’ on page 17. We will pay this to
then withdraw your fund as an ARF. If you
you by sending you a cheque unless
do not choose to take a regular withdrawal
you tell us otherwise.
or if the regular withdrawal you take is
below a certain amount, we will pay you a
Unlike an annuity, we will not pay a regular
minimum amount each year, less any tax
withdrawal to you for life. If your ARF
due at the time. We explain this under
grows at a lower rate than the level of
‘Minimum withdrawal amounts’ on page
withdrawal you have chosen, this will
17. We will pay you this through the post
reduce your original investment and your
by cheque unless you tell us otherwise.
fund could run out before you die. The
higher the withdrawal, the higher the risk
of this happening.
11
4
Complete
Solutions
ARF 1/AMRF 1
investment
decision
12
1. The amount of risk
Summary you are willing to take
Depending on which fund or asset you
There is a wide range of funds available invest in, its value can fall as well as rise
for you to choose from. The fund that is over the investment period. By choosing
right for you depends on: lower-risk investments, you are aiming to
protect your initial investment from large
• the amount of risk you are willing to falls. However, the potential for large gains
take; and is lower than if you choose a higher-risk
• the amount of control you want on investment.
where your pension invests.
Higher-risk investments such as company
Generally funds that offer the highest shares do not aim to protect your initial
potential for growth have the biggest investment from large falls, but you do
ups and downs. have the potential to gain much more,
especially over the long term. If you invest
You can switch to a higher-risk or in these types of investments, or share-
lower-risk investment fund. based funds, you should realise that, in
wanting a higher return, you need to
For a full list of the funds available, accept that the value of these funds can
please see your separate Fund Guide. move up and down, sometimes by large
amounts.
Your financial adviser will help you
decide what is best for you. 2. Choice of investments
We have brought together a number of
different types of funds which invest in
Complete Solutions ARF 1 and AMRF 1 property, shares, commodities (such as oil
offers a wide range of investment options, and gas) or fixed-interest stocks. You can
because everyone has different needs and choose to invest in funds run by some of
views on how they would like to invest. the most successful fund managers in the
world such as Irish Life Investment
Where, and how, you invest will depend Managers, Fidelity International and
on the following. Bloxham. Or you can choose to invest in
our ‘indexed’ managed funds which aim to
13
track the performance of particular stock
markets. These funds are likely to suit
most people investing in an ARF or AMRF.
Think about how much investment
experience you have and to what extent
you want to be involved in the detailed
investment decisions of your fund. Are
you comfortable choosing the individual
assets your fund invests in or are you
happy to leave this to a fund manager?
Comparing the options
Once your financial adviser has helped you
decide where you stand on all these
questions, they can help you build your
personalised investment plan using any
combination of the funds outlined in your
separate Fund Guide.
If your ARF grows at a lower
rate than the level of
withdrawals you are taking, your
original investment will be reduced.
Warning: The value of your
investment may go down as well as
up.
14
5
Withdrawal
options
15
Before investing in an ARF so that you can
Comparison between a
take regular withdrawals you should
guaranteed annuity and
consider the main points about annuities
an ARF
and ARFs.
This illustration compares a guaranteed
annuity income with regular withdrawals
Annuity option from your ARF – its aim is to highlight that
If you choose to buy an annuity with your
regular withdrawals from an ARF are not
pension fund you are changing your
guaranteed to last for life.
retirement fund into a regular income
guaranteed to last you for life. It does not
For example, the current annuity available
matter if returns from investment markets
for a male aged 65 is ¤4,132 a year based on
are poor or if you live for a long time
a fund of ¤100,000 (March 2011). If the
because you will be paid an income for as
same person took this regular withdrawal
long as you live. You can’t withdraw your
from his ARF every year, the fund might run
money and there is no cash-in value once
out before he dies depending upon the
you have bought the annuity.
growth rate achieved under the ARF.
ARF option The table below illustrates this
Your Cornmarket ARF1 gives you the option
to take a regular withdrawal. You can Income ¤4,132
withdraw between 5% and 15% of your ARF growing at ARF will run
value of your fund every year. This 3% a year out at age 86
withdrawal may not be paid for life. Your ARF growing at ARF will run
fund can fall as well as rise and the 6% a year out at age 95
withdrawals you take could reduce your
Guaranteed Annuity Payable for life
fund quicker than expected if market
conditions are poor.
Assumptions:
• A single payment of ¤100,000 into your
The withdrawal or income from an ARF or
Complete Solutions ARF 1.
an annuity is subject to any tax due at the
time.
• All income payments are before tax.
• Current annuity rate is based on male,
aged 65 with the pension increasing at a
16
guaranteed rate of 3% a year. Annuity In summary, the ARF may not provide
income for a female will be lower. The income after you retire for the rest of your
annual amounts shown are paid every life and the fund could run out if there is an
month in advance and the guarantee excessive level of income withdrawal.
period is 5 years.
Warning: The income you get from
• The ARF investment is not guaranteed this investment may go down as
and can go down as well as up. well as up.
• The ARF is invested in the Consensus Regular withdrawal option
Fund with a 1% fund charge every year. You can choose to take a regular
withdrawal of between 5% and 15% of the
• If regular withdrawals are higher or if fund you have built up each year. We can
growth rates are lower, the ARF fund will pay this to you every month, every three
run out earlier than shown in the months, every six months or every year.
example. We won’t apply any early withdrawal
charge to these payments. You can decide
• For the purpose of this illustration, the whether you want your withdrawal to be
withdrawal payments on the ARF are paid by cheque through the post or to your
assumed to be the same as the annuity bank account direct. Please see pages 10
payments. and 11 for more details.
• This table is for illustrative purposes only Minimum withdrawal amounts
- the minimum withdrawal amount from The Finance Act 2006 introduced an
an ARF is currently 5% a year (March obligation on all qualifying fund managers
2011). You can take a regular withdrawal to take from ARF funds every year as if you
amount between 5% and 15% of the had taken a minimum withdrawal. So, if
fund value. you decide not to take a regular
withdrawal or if you take a regular
You can get a quote from your financial withdrawal which is less than this minimum
adviser giving future estimated fund values withdrawal amount, we have to take any
based on your initial investment. tax due at the time from your fund as if you
had. Each December, we will review any
regular withdrawals you have taken
17
during the year. If you haven’t taken any take is ¤350 and the value of the
regular withdrawals, or if the withdrawals investment after the withdrawal must be
you have taken are lower than the ¤1000. You will have to pay tax on any
minimum withdrawal amount, we will pay withdrawals you make.
you the minimum withdrawal amount less
any tax due at the time. We will only take With your Complete Solutions AMRF 1,
the minimum withdrawal amount from you can only withdraw any growth over
your ARF from the year you turn 61. and above the original amount of your
investment. The smallest amount you can
The current minimum withdrawal amount take is ¤350 and the value of the
is 5% of the value of your fund at the end investment after the withdrawal must be
of each year (March 2011). This could ¤1,000. Tax will be due on any withdrawals
change in the future. you make.
We will pay this amount to you less any tax We will apply the early withdrawal charge
due by cheque in December of each year. to any lump-sum withdrawals from your
Or, if you ask, we will pay it into your bank Complete Solutions ARF 1 or AMRF 1
account. You can choose to take a higher plan.
withdrawal than this amount, as explained
in the ‘Regular withdrawal option’ section Taking withdrawals if you
on page 17. have a Self-Invested
Fund
AMRFs are not covered by this rule. A Self-Invested Fund gives you ultimate
However, when you meet the guaranteed control over where your pension fund is
pension income for life requirement or invested. If you choose this fund, you can
reach age 75, your Complete Solutions decide what investments you want in your
AMRF 1 becomes an ARF and your fund fund. For more details on this fund, please
will be treated in the same way as read your separate Fund Guide booklet. If
explained under ‘Minimum withdrawal you have a Self- Invested Fund, there are
amounts’. extra rules on taking cash out of your
Complete Solutions ARF 1 which you
Lump-sum withdrawals should remember. These are because we
You can also take one-off lump sums out of can only take funds out of your Self-
your ARF. The smallest amount you can Invested Fund if there is cash available.
18
Depending on the assets held in your retire. An ARF is ideal if you want to keep
fund, it can take time to sell these assets to control of your money, but there is more
make cash available. risk.
Regular withdrawals In making withdrawals, you should
If you have a Self-Invested Fund, we will remember the following points.
take the regular withdrawal payments from
the rest of your funds but not the Self- • Making regular withdrawals may
Invested Fund. If you are fully invested in reduce the value of your ARF, especially
the Self-Invested Fund, we will pay your if investment returns are poor or you
regular withdrawals from the cash part of choose a high rate of withdrawal (or
your Self-Invested Fund. both).
Lump-sum withdrawals • Regular withdrawals over a long period
You can take a lump-sum withdrawal from may use up all of your ARF.
your Self-Invested Fund. However, there is
likely to be a delay between when you ask • The higher the level of regular
us for the withdrawal and when you will withdrawal you make, the higher the
receive it. This is because we must first sell chances are that you will use up your
assets in your fund to get the cash we need ARF in your lifetime. Please see pages
to give you your withdrawal. The length of 10 and 11 for more details.
this delay will depend on the type of asset
your fund is holding. If your Self-Invested • If your pension fund will provide your
Fund falls below ¤1,000, your policy will only or main source of income after you
end. We will apply any early withdrawal retire, you should consider investing
charge to these payments. Tax will be due some or all of it in an annuity so you
on any withdrawals you make. have an income for life.
Conclusions
The annuity option pays a known income
for life, no matter how long you live. This
is especially important if your pension fund
is your only form of income when you
19
6
Charges
20
This section will show the charges
Yearly plan charge
applying to your Complete Solutions ARF
This charge, if it applies, will be shown on
1 / AMRF 1 contract.
your plan schedule. We take it as a
percentage of your fund value and it could
The same charges apply to both the
be up to 0.5% a year. We cancel units
Complete Solutions ARF 1 and AMRF 1
every month to pay this charge. If it
plans.
appears on your schedule, it applies as
well as the yearly fund charge.
Initial charge
We will use your investment (your
Charge for early
retirement fund) to buy units in one or
withdrawal
more funds. The amount of your
If you take your money out more than five
investment used to buy units depends on
years after you put it in, we will pay you
the size of your retirement fund.
your fund value. (You must pay tax on this
amount.) However, if you want to transfer
The percentage of your investment used
or withdraw your investment less than five
to buy units in your fund choice can range
years after putting your money in, we will
from 97% to 100% depending on the
reduce your fund value by taking off a
amount you have to invest. This charge
charge as follows.
will be shown on your plan schedule.
Please talk to your financial adviser or us
Years 1 to 3 5%
for details of this percentage.
Year 4 3%
Year 5 1%
Yearly fund charge
We take this charge based on the value of
This refers to the anniversary of the date
the fund at a given time. The actual charge
you invest. You may make more than one
depends on the fund you have chosen.
investment into the same plan at different
We take the fund charge from the fund
times. The charge applies to each separate
and it is reflected in each fund’s unit price.
investment. For example, if you made an
extra investment during year three and
The yearly fund charge for each fund is
you cash in all of your investment during
shown in your separate Fund Guide which
year four, we will take a 5% charge from
you should read carefully before you
your extra investment. However, we will
decide to invest.
21
take a 3% charge from your initial
investment amount. You may want to
make a regular withdrawal from your
Complete Solutions ARF 1 plan. We allow
you to make a regular withdrawal of up to
15% of your original investment every year.
We will not take an early withdrawal
charge on these payments. The early
withdrawal charge, as outlined earlier, will
apply to any lump-sum withdrawals taken
in the first five years of your investment.
22
7
Great
service
23
As this is a major long-term investment, we There is no substitute for one-to-one
make sure to keep you informed about your advice and we would recommend that you
Complete Solutions ARF 1 or AMRF 1 plan regularly review the progress of your
and how it’s doing so that you can review it Complete Solutions ARF 1 / AMRF 1 plan
regularly. We’re here to give you the with your financial adviser.
information you need, when you need it.
In the interest of customer service, we will
• You can phone 01 704 1111 to check record and monitor calls.
the value of your Complete Solutions
plan.
• Every year we write to you to let you
know how your Complete Solutions
ARF 1 / AMRF 1 plan is doing. We will
show you what you’ve paid and what
your plan is worth.
• By logging on to our website
(www.irishlife.ie), you can see how
each of the funds is doing and get
answers to frequently asked questions.
You can also see the value of your plan and
even switch funds free of charge. Certain
restrictions may apply. If you have a Self-
Invested Fund, you will also be able to see
detailed fund accounts. These will show
the investments you will hold in your fund,
cash flows in and out of the fund as well as
expenses and charges we take. The actual
value for the Self-Invested Fund will not be
finalised until the asset has been sold.
24
8
Your questions
answered
25
Am I eligible to invest in Personal Retirement Savings
an approved retirement Account (PRSA)
fund? ARF and AMRF options are available using
Whether you can invest in an ARF or an the fund built up in a PRSA. However,
AMRF depends on what type of pension there is the option to leave your fund
plan you already have. The option to under your PRSA and apply the same rules
invest in an ARF or an AMRF will apply if as if it were an ARF or an AMRF. For
you are using the funds from one or more example, you can make withdrawals from
of the following contracts. your PRSA fund whenever you want. You
do not have to move your funds from a
Personal pension plan PRSA to take advantage of ARF-type
The option to invest in an ARF or AMRF is benefits.
available if you have a personal pension. If
you took out your pension plan when you Whether you decide to move your fund
were self-employed, a sole trader, a from a PRSA to an ARF or AMRF depends
partner, or you worked for a company that on whether the ARF or AMRF offers
did not have a pension scheme, you most different options. For example, what
likely have a personal pension plan. investment choices do you have in that
new product (in other words, is it different
Defined Contribution Company from your existing PRSA)? You should also
pension plan consider the charges under the new
If you are an employee in a defined product versus the existing charges under
contribution company pension scheme your PRSA. There may be more
you can invest in an ARF or AMRF. considerations and you should discuss this
choice with your financial adviser.
Additional voluntary contribution
(AVC) plan Are there any restrictions
If you contributed extra amounts to top up to investing in an
your company pension plan, you can approved retirement
invest the money built up in your pension fund ?
fund from your additional voluntary To invest in an ARF, you must be able to
contributions, in an ARF or AMRF. show the Revenue Commissioners that
you have a guaranteed pension income for
26
life from other sources of at least ¤18,000 • You start receiving a guaranteed pension
a year. income for life from other sources,
(currently ¤18,000 a year), or
Examples of the types of guaranteed • You reach age 75.
pension income for life that the Revenue
Commissioners will accept include: At this stage your AMRF will become an
ARF and you can make withdrawals from
• your State Pension benefits; your plan. You will have to pay tax on all
• any pensions paid from occupational withdrawals from your ARF or AMRF.
pension schemes;
• an annuity guaranteed for life which Will I have access to my
you have bought with the proceeds of money?
another pension fund. Yes. You can make withdrawals from your
Complete Solutions ARF 1 as often as you
If you do not have a guaranteed pension need to. Restrictions apply to withdrawals
income for life of ¤18,000 a year, you from your Complete Solutions AMRF 1.
must invest the first ¤119,800 (or the Please see page 26 for more details. If you
balance of the fund if less) in an approved move your money less than five years from
minimum retirement fund or buy an the start of your investment, we will take a
annuity for the same amount. charge for early withdrawal. See page 21 for
more details.
An AMRF is similar to an ARF, except that
there are restrictions on what you can take Will I have to pay tax on
from the fund. You can withdraw any gain my Complete Solutions
you make within the AMRF over and above ARF 1 / AMRF 1?
the original amount you invested. You also Yes, you will have to pay tax on any
can buy an annuity with the fund at any withdrawals from your ARF or AMRF. See
stage during the term of your AMRF plan. page 8 for more details.
However, until one the following happens What happens to my fund
(whichever is first) you cannot make if I die?
withdrawals from the original amount you One of the main differences between an ARF
invested. / AMRF, and an annuity is that with an ARF
or AMRF you own your retirement fund.
27
This means that when you die, you can
What about tax if I die?
leave the funds in your ARF or AMRF to
If your funds are transferred to an ARF in
your next of kin or other beneficiaries.
your husband’s or wife’s name, there is no
income tax or capital acquisitions tax
When you die, we will pay 100.1% of the
(CAT) due.
value of your Complete Solutions ARF 1 or
AMRF 1 plan. If you leave the funds to
If you leave your funds to anyone else,
your husband or wife, they can transfer
they may have to pay income tax or CAT
the funds to an ARF in their name. In all
depending on who they are and their
other cases, we pass the funds to your
circumstances.
estate.
If your estate has to pay income tax, we
will deduct this before paying the
proceeds of your fund to your estate.
Table A - summary of the tax rules after you die if the ARF or AMRF was
set up from the proceeds of your pension fund (based on rates at March
2011)
ARF or AMRF inherited by Income tax due Capital Acquisitions Tax due?
Surviving husband or wife None if transferred into an ARF in No
the husband’s or wife’s name.
PAYE is due on any future
withdrawals.
Your children if 21 or over Yes, at standard rate of 20% No
Your children if under 21 None Yes. Can inherit up to ¤332,084
each without paying CAT. Then you
must pay CAT at 25% on any
inheritance over this.
Anyone else (including surviving Yes, at deceased’s tax rate at the Yes. Can inherit up to a certain
husband or wife if benefit paid out time of death (either 20% or 41%) amount depending on their
as a lump sum) relationship to you. Then they must
pay CAT at 25% on any inheritance
over this.
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Table B - Summary of tax rules that apply:
- after your death, if you inherited the proceeds of an ARF from your
husband or wife; or
- if your husband or wife dies after inheriting the ARF from you.
(Based on rates at March 2011)
ARF inherited by Income tax due Capital Acquisitions Tax due?
Your children if 21 or over Yes, at standard rate of 20% No
Your children if under 21 None Yes. Can inherit up to ¤332,084
each without paying CAT. Then
they can pay CAT at 25% on any
inheritances over this.
Anyone else Yes, at standard rate of 20% Yes. Can inherit up to a certain
amount depending on their
relationship to you. Then they
must pay CAT at 25% on any
inheritance over this.
What level of potential returns can I expect to
receive?
It is important to realise that the value of ARF or AMRF investments will go up and down
and that there is the possibility that, at any time, the value of your your Complete Solutions
ARF 1 or AMRF 1 can be lower than your initial investment. Any returns shown are
examples only and are not a guide to future performance. Any returns will depend on
investment and economic conditions at the relevant time in the future.
Who is my plan provided by?
Your plan is provided by Irish Life Assurance plc. Your terms and conditions will set out the
details of your contract with us. This booklet tells you about our approved retirement fund
and approved minimum retirement fund and answers the questions that you may have. It is
only meant to be a guide to help you understand your investment and does not give all the
details of your plan. These details will be in your plan schedule.
29
We will include more specific details and Customer Service Team
rules in your plan terms and conditions, Irish Life
which you should also read carefully. Lower Abbey Street
Dublin 1.
Can I cancel my plan?
You have 30 days after we send your If you are still not satisfied, you can
Welcome Pack to cancel your plan. If you contact:
decide to do this, we will return any Financial Services Ombudsman’s Bureau
contributions you have made in line with 3rd Floor
Revenue rules, less any reduction in Lincoln House
investment values during the period. The Lincoln Place
information in this booklet is based on our Dublin 2.
understanding of current law, tax and
Revenue practice in March 2011. Your Lo-call: 1890 88 20 90
application form, terms and conditions and Fax: 01 6620890
schedule will be your legal contract with
us. The contract will be governed by Irish Email: enquiries@financialombudsman.ie
law. The Irish courts are the only courts Website: www.financialombudsman.ie
that are entitled to hear disputes.
Family law and pensions
Who should I talk to if I If you go through a separation or divorce,
have any questions or a court application for a pension
complaints? adjustment order (for the retirement or
If you have any questions about your your death benefits we pay under this plan)
Complete Solutions ARF 1 or AMRF 1 may be made. You can get more
plan, you should talk to your financial information on how a pension adjustment
adviser or phone our customer service order works from your solicitor. If a
team. We will do everything possible to pension adjustment order has to be
sort out your query. granted on your plan, you must let us
know.
If you have a complaint and feel that you
have not got satisfaction by contacting the
above, you should write to:
30
9
Glossary
31
Annuity example, if a government wants to raise
When you retire, you can use your money, they can issue a bond. If you loan
retirement fund to buy an annuity. This is a money to a government, you get your
guaranteed income from your pension money back after a set time and you will
fund after you retire. This income is paid also receive a fixed interest rate.
on a regular basis for the rest of your life.
Commodities
Approved retirement fund (ARF) Raw materials or basic agricultural
When you retire, you can invest your products that can be bought and sold in
retirement fund in a personal investment recognised markets. Examples of
account called an approved retirement commodities include oil, gas, gold, wheat
fund. You can withdraw money from the and cattle.
account when you need it.
Equities/shares
Approved minimum retirement fund Investing in shares means investing in
(AMRF) companies on the stock market. You then
When you retire, if you do not have a become a shareholder. For the purpose of
guaranteed pension income for life of the funds that invest in shares, as
¤18,000 a year, and you are not buying an described in this booklet, we are the
annuity, you can invest ¤119,800 from investor, so we are the shareholder. How
your pension fund into a personal those companies perform affects whether
investment account called an AMRF. the price of units in the fund rises or falls.
Additional voluntary contributions
(AVCs)
These are extra contributions you can pay
into your PRSA or company pension to
add to the pension benefits already
available from your company pension
scheme.
Bonds
A bond is a type of loan given to a
company or a government. For
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Contact us
Phone: 01 704 1010
8am to 8pm Monday to Thursday PEFC/01-31-70
10am to 6pm on Fridays From sustainably managed forests -
For more info: www.pefc.org
9am to 1pm on Saturdays
Fax: 01 704 1900
E-mail: customerservice@irishlife.ie
Website: www.irishlife.ie
ILA 4348 (REV 03-11)
Write to: Irish Life Assurance plc, Lower Abbey Street, Dublin 1.
Irish Life Assurance plc is regulated by the Central Bank of Ireland. In the interest of customer service we will record and
monitor calls. Irish Life Assurance plc, Registered in Ireland number 152576, VAT number 9F55923G.