IMO Financial Services Pension Seminar 2009

							IMO Financial Services
Pension Seminar 2009
IMO Financial Services -
History


   Established in 1993

   Established by Doctors, for Doctors




    Fitzserv Consultants Ltd, T/A IMO Financial Services is regulated by the Financial Regulator
Why IMO Financial Services?


   Independent Authorised Advisors
   Specialist Knowledge
   Best Advice
   Group Schemes
   We’ll come to you!
Why Pensions?


   Protect your lifestyle in Retirement

   Reduce Tax




    Fitzserv Consultants Ltd, T/A IMO Financial Services is regulated by the Financial Regulator
Protect your Lifestyle in
Retirement

Will your pension last as long as you?
   People live longer
    –   Average Male lives to 81 (16 years after NRA)
    –   Average female lives to 84 (19 years after NRA)
Reduce Tax


   Tax Relief on Contributions
   Tax Free Investment Growth (no DIRT)
   Tax Free Lump Sum




    Fitzserv Consultants Ltd, T/A IMO Financial Services is regulated by the Financial Regulator
Tax Relief on Contributions


PAYE Rate                                   -                                  41%
PRSI Rate (A1)                              -                                   6%

Total                                       -                                  47%




  Fitzserv Consultants Ltd, T/A IMO Financial Services is regulated by the Financial Regulator
Tax Relief on Contributions


For every €100 contributed
   You pay €53
   Revenue pay €47

      Self Employed (S) Do Not get PRSI relief


    Fitzserv Consultants Ltd, T/A IMO Financial Services is regulated by the Financial Regulator
Options:
Consultants, PHDs & NCHDs


             HSE Defined Benefit
         Occupational Pension Scheme




 Fitzserv Consultants Ltd, T/A IMO Financial Services is regulated by the Financial Regulator
HSE Defined Benefit Pension

   Based on service
   Pension of up to ½ final salary
   1/80th of final salary per year’s service
   Full service = 40 yrs     (40/80ths = ½)
   Revenue allow you to fund for 2/3rds final
    salary as pension
   Tax Free lump sum of up to 1.5 times final
    salary (3/80ths per year’s service)
HSE Defined Benefit Pension


   Employee Contribution     6.5%
    –   Member Contribution     5%
    –   Widows & Orphans      1.5%
Pension Contribution Limits

   Age            % of Income
   Under 30s            15%
   30 – 39              20%
   40 – 49              25%
   50 – 54              30%
   55 – 59              35%
   60 +                 40%
Options:
Consultants, PHDs & NCHDs


   Buying Back Years
   Purchasing Notional Years
   AVCs
   Standalone PRSA AVCs
Options: GPs


    GMS Defined Contribution
   Occupational Pension Scheme

     Self – Employed Income
WARNING!


 MAKE SURE TO SEPARATE GMS &
   SELF-EMPLOYED INCOME FOR
       PENSION PURPOSES
WARNING! Revenue Changes

 Pensions Earnings cap reduced from
  €275,359 to €150,000, from January
  2009
 Must maximise AVCs before
  addressing Personal Pensions
  ACT NOW! Maximise your pension for
    2008 based on higher earnings cap
How much of a Pension
do I need?


  To retire on half your final salary:

   Pension Fund = 10 x final salary
How much of a Pension
do I need?


   Final Salary = €100,000
   Pension = €50,000
   Pension Fund = €1,000,000
GMS Pension


   Member Contribution 5% of Capitation
    (Maternity, vaccinations not included)

   Health Board Contribution 10%
How are you fixed?

40 Years Service

   Revenue Max      22.7
   Public Servant   17
   DC 15%           9.2
How are you fixed?

20 Years Service

   Revenue Max                 22.7
   Public Servant              8.5
   DC 15%                      3.7

           GMS established in 1989
Additional Voluntary Contributions


   AVCs – Mercer

   Standalone PRSA AVCs
Advantages of PRSA AVCs

   Choice & Control in term of providers &
    Fund Options – SECURITY
   Transparent Charging Structure
   Flexibility – you own policy – can take it with
    you from hospital to hospital
   Retirement Options – ARF – forms part of
    your estate
   Use AVC to maximise Tax Free Lump Sum
PRSA AVC Charging Structure


    Enhanced Allocations for IMO Members
    – up to 99.5%

   Management Charge 1%
   No Bid Offer Spread
Summary of Main Points for GPs

   Separate GMS & Private Income
   Earnings cap reduced to €150,000 fro Jan 09
    Last chance to maximise on €275,239 cap
   Must address AVC before Personal Pensions
             PRSA AVCs - SECURITY
   Can you contribute to a Personal Pension
    going forward?
For Further Information or to Meet with
          a Financial Advisor



 Contact:

 Carol Dermody

 Tel: 01 6618299

 Email: cdermody@imo.ie


Fitzserv Consultants Ltd, T/A IMO Financial Services is regulated by the Financial Regulator