1. Presentation to Presented by:- Noel Hackett (QFA, MIB, Dip Invest)
New Ireland Assurance Senior Pensions Consultant
Tony Delaney- Area Manager
5th,8th & 9th April time11.00;13.15;15.00

2. Benefits at Retirement
At retirement your benefits will come from:-
State Pension
NUIG Scheme
Purchase Notional yrs
Additional Voluntary Contributions ( AVCs )
Accumulated wealth/savings/inheritances

3. NUIG Pension Scheme Defined Benefit Scheme Scheme provides
Lump Sum ( Gratuity )
Spouses Pension
Increases during course of payment
Death in Service Benefit
Actual benefits depend on when you joined

4. Key Dates 1995 Future employees pay PRSI and receive 2004
State Pension
Lower pension from NUIG
2004
Future employees have minimum RA of 65
Immediate early retirement pension available -
Existing employees from 50
New employees from 55

5. NUIG Scheme – Pre 2004. Normal Retirement Date is age 65.
but can retire from age 60 onwards
Pension
1/80th x Pensionable Service x Pensionable Salary
State Pension not payable (pre 95!)
Lump Sum
3/80th x Pensionable Service x Pensionable Salary

6. Example – Pre 1995
Employee on a salary of €50,000 joined NUIG in 1990 at age 30
Service to age 60 is 30 years
Pension from 60 is €18,750 p.a.
30/80ths x €50,000
State Pension not payable
Tax Free Lump Sum is 90/80ths of €50,000 - €56,250

7. NUIG Scheme – Post 1995 Normal Retirement Date is 65, BUT can retire….
Pre 2004 employees – From age 60
Post 2004 employees – From age 65
Pension
1/200th Pensionable Service x Pensionable Salary
Plus
1/80th x Pensionable Service x Pensionable Salary
State Pension also payable
Lump Sum
3/80th x Pensionable Service x Pensionable Salary

8. Example – Post 1995
Employee on a salary of €50,000 joined NUIG in 2000 at age 30
Service to age 65 is 35 years
Pension from 65 is €11,396 p.a.
35/200ths x €40,040 = €7,007 pa
35/80ths x €9960 = €4,357 pa
State Pension also payable
Tax Free Lump Sum is 105/80ths of €50,000 - €65,625

9. State Pension From 2012 Applies to all employees who joined since 1995
Single Person € per week
Married Couple €383.80
Applies to all employees who joined since 1995

10. Early Retirement Was always allowed but only as a deferred pension
Changes from 2004
Existing employees from 50
New entrants from 55
Immediate pension payable
Early payment reduction

11. Early Retirement Benefits – NRA 60
Employee on salary of €50,000 joined before early retiring at 55
Service completed 25 years
Pension : 77.8% x 25/ 80ths x €50,000 = €12,156
Tax Free Lump Sum : 90.7%x 75/80ths x €50,000 = €42,515

12. Employee Contributions
Contributory for new Entrants post April ’95
Total Contribution Rate is 6.5%
Lump Sum % Pensionable Remuneration
Pension %
Net Pensionable Remuneration
Spouse/Civil Partner & children’s pensions 1.5% Pensionable Remuneration

13. Bridging the Gap - 2 Options
Purchase of Notional Years of Service
Through NUI Galway Pensions Office
AVC Scheme
Through New Ireland Assurance

14. Notional Years Employee can buy “notional years” Defined Benefit basis
Must buy year with all the “trimmings”
Pension
Gratuity
Spouses Pension
Pension Increases

15. AVC Scheme You can pay into the AVC Scheme
No promised benefits – will depend on
Investment Returns
Annuity Rates – if you buy a pension at retirement
Can be more flexible than added years, you can
Select a monthly contribution
Save for a specific benefit - lump sum only
ARF option

16. Scope for AVCs Did you join after 1995 ? Do you Is your
Pension lower than Revenue will allow
Do you
Wish to retire early ?
Have short service ?
Want to provide a higher Spouses Pension
Is your
Pension & Lump Sum based on your final (cut) salary
Scope to enhance this -
“Revenue Final 10 year salary rule”

17. Additional Voluntary Contributions
Government incentive through:-
Tax Relief, at source
Generous contribution limits
ARF option – greater flexibility at retirement
NB – Pension Fund levy of .6% of fund will cease in 2014

18. Employee Tax Relief Limits (including AVCs)
Age % of Remuneration
Up to %
30 – %
40 – % % %
60 Plus %
An earnings cap of €115,000 (2013) will apply to Employee Pension Contributions for the purpose of tax relief.
The above limits include contributions to NUIG Pension Scheme

19. Tax Relief Monthly Contribution €400.00 Tax Relief €80.00 €164.00
Net Cost € €236.00
Contributions and tax relief operated at source

20. USC for self assessed under age 70 the 2013 rates Part of aggregate income Rate of USC First €10, % Next €5, % Next €83, % Income > €100, %

21. TAX CREDITS 2013 2010 2013 € € Employee Tax credit 1,830 1,650
€ €
Employee Tax credit 1,830 1,650
Personal tax credit-single 1,830 1,650
-married 3,660 3,300
Widowed bereaved in yr of ass. 3,660 3,300
One parent family tax credit 1,830 1,650
Home carer tax credit
Dependant relative
Blind person credit-single 1,830 1,650
both blind -married 3, ,300
Additional credit widowed pers
Age credit-single
Age credit married

22. AGE EXEMPTION LIMIT Standard Rate Bands € €
€ €
Single/Widowed , ,800
Married-one income , ,800
*Married-two incomes , ,500
One parent/Widowed , ,800
With a max transferability between spouses of €45,400 in 2010 and €41,800 in 2011
AGE EXEMPTION LIMIT
Single €20,000 €18,000
Married €40,000 €36,000
Unchanged for 2013.

23. Example Employee aged 45 on a salary of €60,000 who joined post 1995
Maximum AVC contribution is:-
25% of €60, €15,000
Less 1.5% of €60, €
Less 3.5% of €60,000 - €23,951 € 1,262
Scope for AVC €12,838

24. Actual AVC Member – Example Mary Murphy Retired in April 2010.
29yrs service. Age 65. Salary €59,000
NUIG Pension €12,705.38p.a.
NUIG Tax free lump sum €64,162.50
AVC Fund built up in 5 €300pm = €21,075.30
Net cost, after tax relief for Mary was€10, that she paid
TAX free lump sum from AVC is €21,075.30
Could have been €24, from AVC if it was in her fund.
Tax free LUMP SUM approved by Revenue is €88,500

25. Options at Retirement Tax Free Lump Sum ( Up to €200,000 )
Ongoing Pension
Personal
Spouses
Approved Retirement Fund ( ARF)
Minimum income of €12,700
Invest €63,500 in AMRF
Free to invest as you wish
Withdrawals taxed as income

26. AVC Drawdown For next 3 years Care needed before drawdown considered
Draw down up to 30% of AVC Fund
Tax payable at your marginal rate
Only one “ opportunity” to make a drawdown
Care needed before drawdown considered

27. Making it easy to track your Fund
Pensions Schemes Online
Password protected website
Information on
premium history
fund value
Estimated fund at retirement
It is free and easy to use
Review yearly – especially if circumstances change

28. Investment Options
There are13 funds available to Invest in including the Default Fund
The IRIS Retirement Fund
Strongly recommend all members to review their fund choice with Noel Hackett

29. Default Investment Strategy
Your AVCs will be invested in the default strategy if you don’t chose a fund
The Default Strategy is the Individual Retirement Investment Strategy ( IRIS )
The longer the term is to retirement, the higher the proportion invested in equities and other growth assets
As retirement approaches, the purchasing power of the fund is protected by switching into Fixed Income Assets/Cash

30. Improvements to IRIS Improvements implemented in December 2012
Part of the equity content replaced by a Target Return Strategy
Two Key Benefits
Greater diversification
Greater flexibility

31. IRIS Glide Path – Default Fund

33. IRIS Performance – to 1st March 2013

34. Other Investment Options
Low Risk
Cash Fund
IRIS- Default Fund- Lifestyle Fund.
Medium Risk
Pension Gilt Fund
BNY Mellon
Elements
Protected Assets
Medium to High
Pension Managed
Consensus Managed
Ethical Managed
Evergreen Fund
High Risk
Pension Equity Fund
Innovator

35. Performance Figures FUND past 12months 3yrspa 5yrspa
Cash Fund(L) 0.2% % %
Gilt Fund (M) 7.7% % %
BNY Mellon(M) 8.8% % n/a
Elements (M) 4.4% % n/a
Protected (M)assets(M) 4.3% n/a n/a
Managed(M-H) % % %
Consensus(M-H) 12.8% % %
Ethical (M-H) 11.8% % %
Evergreen (M-H) 9.4% % %
Equity Fund(VH) 14.5% % %
Innovator (VH) 7.7% % %
Funds are updated each day.
L-low risk M -Medium risk H- High risk VH -Very high risk

36. Investment Information - New Ireland Website
Click on
Pension
I have a pension
Public Centre
Investment Choice and Performance
Up to date fact sheet for each available fund\
performance of each fund over various time periods
asset splits, fund size etc

37. Other Information - New Ireland Website
Click on
Pension
I have a pension
Public Centre
Popular forms and booklets

38. What Should I Do Next? Pensions Office NUI Galway
Contact:
Pensions Office NUI Galway
Ph ext:
Or:
Noel Hackett, QFA, Pensions Consultant
New Ireland Assurance
Tel ; Mobile

39. Individual Consultations Available
Noel Hackett will be in available
for
Individual Consultations of 45mins duration
(09.00 – 17.00)
Pensions and Investments Office
8 Lower Newcastle Road
10th, 11th 12th 15th and 16th April 2013
Contact Ann Cormican or Jacqueline Joyce in
Extn 5901/5028 to reserve time.

40. Any Questions?
Thank You for attending

41. Cost Neutral Early Retirement
Factors to calculate reduced Lump Sum and Pension (Age 60)
Age
Pension %
Lump Sum % 50
62.4
82.2 51
65.1
83.9 52
67.9
85.5 53
71.0
87.2 54
74.3
88.9 55
77.8
90.7 56
81.6
92.4 57
85.7
94.3 58
90.1
96.1 59
94.8
98.0

42. Cost Neutral Early Retirement
Factors to calculate reduced Lump Sum and Pension (Age 65)
Age
Pension %
Lump Sum % 55
58.2
82.4 56
61.1
84.0 57
64.1
85.6 58
67.4
87.3 59
71.0
89.0 60
74.8
90.7 61
79.0
92.5 62
83.6
94.3 63
88.5
96.1 64
94.0
98.0