Executive Pension Plans
An executive Pension plan is a tax efficient way for a Company to provide pension benefits fro its Directors or key employees. The Company must make contributions to the plan but obtain tax relief against its Corporation Tax bill. Contributions made by employees are optional but any contributions that are made benefit from tax relief at marginal tax rates. Companies can also reduce there PRSI and Health levy liabilities through executive pension contributions.
Executive schemes are set up under Trust separating the pension funds from the assets of the Company. Death and Income Protection benefits may also be provided to employees through an Executive Pension Plan.
At retirement there are many options available to the beneficiary including a tax free cash lump sum of 25% of the fund available.