1 NUI Galway Group PRSA Scheme Personal Retirement Savings Account -suitable for non-pensionable employees Noel Hackett QFA New Ireland Assurance Atlanta House 36 Dominick Street Galway Tel ; rd March 2015 NUI GALWAY PRSA

2 Index  Background  Pensions Update  Eligibility & Contributions  Charges  Tax Benefits  Retirement Benefits  Fund Choice and performance  Communication

3 PRSA Scheme –Who’s Who  Employer – NUI Galway  Suitability – Non pensionable Employees of NUI Galway  Administrators – New Ireland  Investment Managers State Street Global Advisors (SSGA) Kleinworth Benson Investment Managers (KBI)

4 Legal Aspects  Individual PRSA contracts  Assets personally owned by member  New Ireland approved PRSA provider  Registered with the Pensions Board no. APP/H/316/F

5 Pensions Update Pensions Levy:  Temporary Pensions levy finished  0.15% for 2015, what then?  Applicable to private pension funds in operation for Irish residents.  The amount of levy paid in any year will be determined based on the market value of the assets on 30 th June each year. AMRF / ARF Withdrawal:  Changes with effect from January 2015  AMRF – one optional withdrawal each year to max 4% of fund value  ARF – compulsory 4% withdrawal from fund over the year – doesn’t have to be in one withdrawal.

6 Pensions Update  Maximum salary for pension funding is now €115,000 – tax relief still available at marginal rate.  Overall personal lifetime lump sum available tax free is €200,000, next €300,00 at 20% and anything above this at 40% (>€500,000)  Tax relief currently at marginal rate  Standard Fund Threshold €2 million with effect from 1 st January 2014, unchanged for 2015

7 Pensions Update State Pension:  Transition Pension from 65 abolished  Contributory Pension from 66 €11,976 per annum ( single )  Retirement age has been extended to: 66 from from from 2028

8 Eligibility  Employees are given immediate access to the PRSA on joining NUI Galway  Scheme is voluntary. Employee only contributions  New Ireland notified of new entrants to arrange a 1:1 meeting with them

9 PRSA Scheme  Company Normal Retirement Date 65  Retirement for PRSA is any age between years  Early retirement may be taken from age 50 if retiring from your employment

10 Charges  5% Contribution Charge  1% Annual Fund Management Charge

11 Tax Benefits  Tax Savings on contributions  Tax Free Investment  Tax Free Lump Sum at Retirement

12 Tax Relief On Pension Contributions Salary€48,000 Employee Contribution€200 p.m. (5% of Salary) 20% tax40% tax Employee Monthly Contribution before Tax Less Tax Relief on Employee Contribution Net monthly cost to Employee Total Contribution Invested200.00

13 PRSA Contributions Age Limits Max PRSA Contributions* Under 30 15% 30 to 39 20% 40 to 49 25% 50 to 54 30% 55 to 59 35% % *Percentage of your pay that you can contribute to your PRSA and obtain tax relief

14 What happens if You Leave  You can take your Investment with you (Please ask your advisor before you decide to ensure it is in your best interest)

15 What do I get at Retirement?  25% of fund tax free  Balance as* -ARF / AMRF - Open Market Option -Annuity ( via ARF ) - Open Market Option -Taxable Cash *Balance of retirement fund can invest in an ARF if guaranteed income of €12,700 or €63,500 invested in an AMRF

16 Investment Choice Investment Ezine: 16 available funds for Investment  Standard PRSA Investment Ezine Standard PRSA Investment Ezine

17 Investment Choice Lifestyle Option  Individual Retirement Investment Service (IRIS)  Passive IRIS  Indexed Euro-zone Long Bond Fund Low Risk Funds  Pension Cash Fund Medium Risk Funds  Pension Gilt Fund  Pension Income and Growth Fund

18 Investment Choice cont.. Medium to High Risk Pension Funds  Pension Evergreen Fund  Pension Managed Fund  Pension Consensus Fund  Pension Ethical Managed Fund  KBI Pension Managed Fund High Risk Funds  Pension Equity Fund  Pension International Equity Fund  Indexed all Equity  World Indexed Hedged Fund  World Indexed Unhedged Fund

19 Investment Strategy Lifestyle Approach  The longer the term is to retirement, the higher the proportion invested in equities  As retirement approaches, income is secured by switching into Fixed Income Assets/Cash

20 Active IRIS: Moving to safer assets as you get older Active IRIS Absolute Return Equities Bonds / Cash

21 IRIS Glide Path – Default Fund

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23 Passive IRIS Glide Path

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26 Communication Every 6 months:  Statement of Account & Investment Report Every year:  Statement of Reasonable Projection Ongoing:  Online Service Available - go to New Ireland’s website and click on Pensions Online

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29 Summary  State Retirement age increasing  Living longer in retirement  Earlier you start the better  Marginal rate tax relief on Employee contributions  Currently the State old Age Contributory Pension is € per week.

30 Next Steps  Talk to Noel Hackett  Consider paying into a PRSA  Review Investment fund/s If you don’t select / haven’t selected a fund contributions will be invested in the IRIS Fund

31 Thank you For further information please contact NOEL HACKETT QFA New Ireland Assurance Atlanta House 36 Dominick Street Galway Tel: M O

32 Compliance Notice This presentation if of a general nature and should not be relied upon without seeking additional information. Terms and conditions apply. All opinions and estimates constitute best judgement and are subject to change. New Ireland Assurance Company plc is regulated by the Central Bank of Ireland and is a member of the Bank of Ireland Group. Warning: The value of your investment may go down as well as up. Warning: The funds may be affected by changes in currency exchange rates. Warning: Past performance is not a reliable guide to future performance.