Pension Products, Employer Obligations

Employer Obligations relating to Pension Contributions

Section 86 Finance Act, 2004 provides that certain information, relating to pension contributions, must be returned by employers. This information will be required to be returned in the 2005 P35 return. The details required will refer to three main pension products and these are listed below. Employers need to be aware of this change to put procedures in place to ensure that recording of these details takes place throughout 2005. This will then facilitate employers to more easily complete the return. The details required are:

Retirement Benefits Scheme

• Number of employees who contributed to retirement benefits schemes by way of deduction from payroll during the year.
• The total amount contributed by employees to retirement benefit schemes by way of deduction from payroll which qualify for tax relief.
• Number of employees for whom the employer made contributions to retirement benefit schemes.
• The total amount contributed by the employer to retirement benefits schemes on behalf of employees during the year.

PRSA Products

• Number of employees who contributed to PRSA products by way of deduction from payroll during the year.
• The total amount contributed by employees to PRSA products by way of deduction from payroll during the year which qualify for tax relief.
• Number of employees for whom the employer made contributions to PRSA products during the year.
• The total amount contributed by the employer on behalf of employees to PRSA products during the year.

Retirement Annuity Contracts (RAC)

• Number of employees who contributed to retirement annuity contracts by way of deduction from payroll during the year.
• The total amount contributed by employees to retirement annuity contracts by way of deductions from payroll during the year which qualify for tax relief.