To whom is this incentive suited?

The incentive only makes financial sense for:

• Low earners such as pensioners or workers completely outside the tax net;

• Individuals who want to invest more than their allowable percentage of salary into a pension scheme in any year.

What are the advantages?

• The Government will add an extra €1 for every €3 of SSIA funds invested in a pension up to a maximum bonus of €2,500. Therefore to receive the maximum benefit from the scheme, you must reinvest €7,500 of your SSIA in a pension;

• The Government will also contribute a tax credit, equal to exit tax paid on the amount that is being transferred from an SSIA to a pension.

What are the criteria to qualify for this incentive?

• You must be an SSIA holder with a gross income in the year before your SSIA matures of no more than €50,000;

•You cannot claim normal pension tax relief on money transferring to a pension from an SSIA under the incentive scheme;

• You cannot use this incentive to replace money you have already committed to contribute to a pension product.

How do you avail of the incentive?

• Transfer some or all of your SSIA fund into your pension plan within three months of your SSIA maturing;

• Request a maturity statement from your SSIA provider and supply this when you invest some or all of your pension plan;

• Sign a declaration, provided by the pension provider, stating that you meet the conditions above.

• Your pension provider will arrange for the Government contribution to be invested into your pension plan.

What pension products are available under the scheme?

SSIA proceeds can be reinvested as:

• An additional voluntary contribution to an existing occupational pension scheme;

• A contribution to a Personal Retirement Savings Account (PRSA);

• A premium under a Retirement Annuity Contract (RAC).