Executive Pensions
More correctly known as an Occupational Pension Scheme, it is a pension policy that provides a company with a tax efficient and flexible means of providing for the future financial security of company directors and selected employees.
The company pension is set up under a trust by an employer to provide retirement and /or death benefits for employees (including directors) and has to be approved by the Revenue. Company pension arrangements can include any number of members from one upwards.
The arrangement must be financed in whole or part by the employer. While an arrangement such as an Additional Voluntary Contribution (AVC) may be fully financed by the employee, this is only permitted where it is supplementary to the main employer sponsored scheme. Recent changes in Revenue criteria for Occupational Pension Plan Schemes have reduced the minimum contribution requirement for employers to 10% of the total contribution.
