Personal Retirement Bond “PRB”
A Personal Retirement Bond “PRB” is a simple, straightforward way to take your pension entitlement with you if you decide to change jobs. Changing your job does not mean losing your pension. When you leave a pension scheme, the value of your fund is invested in a bond, which you can benefit from on retirement.
What is a PRB?
A Personal Retirement Bond (PRB), sometimes referred to as a Buy-Out-Bond, is a personal policy that is set up by trustees of a pension scheme to provide retirement benefits for a former member of the scheme. It basically means that if you leave a pension scheme, you can bring your pension benefits with you by having the value of your fund invested in a bond.
How does it work?
When you’ve decided to set up a Personal Retirement Bond, the next step is choosing how best to invest the money you have. We can invest it in a number of different funds with different companies. You’ll have access to a wide range of different assets, and varying degrees of risk, so you’ll be sure to find a solution that works for you.
You may retire the PRB from any time after your 50th birthday provided that you have left service and you do not have anything to do with this employment anymore.
What PRBs mean for you
- Control– You can take personal control of your pension when you move jobs.
- Choice– You choose the funds that your money is invested in.
- Growth– Any investment growth is tax-free.
Who is this product for?
If you’re planning to leave the company you currently work for, and you’re part of the group pension plan, a PRB could be a great option for you. A PRB will also be suitable if you decide to leave a company pension scheme for any other reason, or if the scheme is winding down.
On retirement, you can take a tax-free lump sum of either:
- 25% of your fund, or,
- based on salary and service, to a maximum of 150% of salary.
The maximum tax-free lump sum you can take is €200,000.
The remainder of your fund can then be invested in an Annuity or Approved (Minimum) Retirement Fund A(M)RF/ Approved Retirement Fund.
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