Defined contribution (DC) schemes are occupational pension schemes where your own contributions and your employer’s contributions are both invested and the proceeds used to buy a pension and/or other benefits at retirement. There are a number of reasons for this: As a result, there are a large number of people contributing to company pension plans in Ireland, who intend residing in another jurisdiction at the time of their retirement. Your rights. The level of benefits depends on your service in the scheme and salary at retirement. According to the Pensions Board, 68% of occupational voluntary plan members belonged to defined benefit plans in 2006. Occupational voluntary Overview Pension plans in Ireland have historically been defined benefit in nature, but there has been a major shift towards defined contribution. The issue of what is referred to as ‘overseas transfers’ from Occupational Pension Schemes is topical at the moment. You may be coming, or returning, to Ireland. These schemes are a tax efficient way of saving for retirement. Option Statement Occupational Pension Scheme What is an occupational pension scheme? This is where it varies from… Your pension options will depend mainly on your work situation, although you may still be able to choose which option is best for you. Be an occupational pension scheme established in Ireland and falling within the scope of the IORP II Directive, without any local law exemptions from that Directive; and invest directly, or through an asset manager, in shares traded on an EU regulated market. If your pension comes from outside Ireland, you usually pay tax in a lump sum annually. Employers must make a contribution into the scheme, even if the contribution is small. If you are getting an occupational pension from an Irish source, it is usually taxed under the PAYE system in exactly the same way as you were taxed while employed. The scheme’s assets are looked after by trustees on behalf of members, their dependants and other beneficiaries. Occupational pensions are taxed in the same way as salaries and wages. If you are, you can get tax relief for pension contributions made to pre-existing plans with a pension provider in another EU Member State. In occupational pension schemes, benefits vest when the member has completed 2 years’ service (including service transferred from previous employers). This section outlines the decisions that you may be faced with and discusses your options. Where the relief applies, the contributions to the overseas plan are treated as if they were made, as appropriate, to: an occupational pension scheme; PRSA; RAC. Defined benefit schemes aim to provide a set level of pension and/or lump sum at retirement. If you are employed, you may be covered by an employer-sponsored occupational pension scheme or relevant public sector scheme. 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