Frequently Asked Questions

The Trustees have been briefed by the Company on this option being made available to members and have had sight of the communication materials. However, this is a Company initiative and all correspondence to you regarding the option is from the Company. Neither the Company nor the Trustees are making any recommendation to members to take up or not take up the option. It is a matter for you to decide whether to take the option on the basis of your own independent financial advice.

If you opt to receive a higher level pension, your pension will increase from XXXXX date.

How long you expect to live is a very important factor in deciding whether to accept the option. If you live for a long time, then giving up your pension increases could result in inflation gradually reducing what you can afford to buy with your pension.

The option may be made again as more of the current workforce reach retirement but there is no guarantee that it will. The level of any uplift is based on the cumulative value of pension increases you are expected to receive in the future. Should you receive another option in the future the level of increase will likely be lower than the option available now due to the passing of time.

If you do nothing then your pension will continue to be paid on the same terms but please note that this option may not be made available to you again.

This offer is available for a limited time only. In order to accept the PIE Option, you must have taken independent financial advice and returned a valid and fully completed Acceptance Form by no later than XXXXXX. We will send you a reminder letter closer to the date. If you have decided not to take up the option, just ignore this reminder.

If you decide to take up the option, you have a [two week] cooling-off period to change your mind after we send you confirmation of your new pension. After the two weeks have expired, your decision cannot be reversed.

This exercise and the information provided to you have been prepared based on current legislation. It is not possible to give any guarantee that future changes in legislation or in the Irish pension environment would not affect the outcome of any decisions you make regarding your pension.

Yes, all pension payments are subject to taxation – as they are currently. This will be deducted from your gross payment through the pension payroll i.e. in the same way that current tax deductions are made.

Further information on the taxation of pensions can be found here (Citizens Information website).

This exercise will have no impact on your Contributory State Pension under the current rules. Further information on the State pension can be found at www.welfare.ie.

Some State benefits, such as the Medical Card, are means- tested and should you take the option to exchange your pension increases for a higher level pension then your entitlement to these means- tested benefits may be affected.

Where you are in receipt of such benefits then you should call the Helpline to outline the benefits you currently receive.

Note that the entitlement to a medical card is assessed to on a case by case basis by the HSE. Where you are entitled to a medical card we would recommend that you seek clarification from the Helpline on XXXXXX or the HSE via their helpline on 1890 252 919 before you make your decision to ensure that your entitlement to a medical card remains unchanged.

Other means-tested benefits include the Household benefits package which is means-tested where the individual is under age 70.

Under the Nursing Homes Support Scheme (“Fair Deal”) a percentage of your income and assets can be contributed towards nursing home care which may otherwise be prohibitively expensive. The contribution from an individual towards the cost of care will depend on their level of income and the value of their assets.

If you require care at some point in the future, and elect to take the PIE option then your contribution to the cost of care under this scheme would be based on your increased pension. This contribution may be higher or lower than that had you not accepted the option, depending on the age at which you enter care.

Further information on this scheme be found here (HSE website).

A dependant’s pension could be payable to a legal spouse, civil partner or child. If you choose to take this option the pension payable to your spouse or dependant will be calculated based on your higher flat-rate pension at death. The spouse’s/dependant’s pension will not receive pension increases. Different rules may apply if there is a pension adjustment order (PAO) in place in relation to your benefits and you should let us know if this is the case. If you accept the option, there is a requirement that your spouse or civil partner also sign the Acceptance Form.

If you are in the process of getting divorced, in order for you to accept the PIE Option, the Acceptance Form must be signed by you and your current spouse / civil partner. If a pension adjustment order (PAO) is already in place when you accept the PIE Option this can be discussed at your Personal Financial Guidance meeting.