Stay on track retirement - Your Scheme Handbook - Ireland Investment Profiler

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Stay on track retirement - Your Scheme Handbook - Ireland Investment Profiler
retirement
Stay on track

Your Scheme Handbook
For members of the Bank of America Ireland Pension Scheme
                                                            Start your journey
2021
Stay on track retirement - Your Scheme Handbook - Ireland Investment Profiler
Contents

                                                          Introduction             3

                                                          The Scheme at a glance   4

       Contributions              8                       The 3-step plan          5

       Investments                10                      Joining                  6
                                                                                       Bank of America (the bank) provides a valuable and flexible benefit package. An important
       Risk profile               12
                                                                                       part of this is helping you provide for your retirement. The Bank of America Ireland
       Control                    14                                                   Pension Scheme (the Scheme) helps you do just that.

                                                                                       The Scheme provides a tax-efficient way
                                                                                       to save for your future.                                             The small print:
                                                                                       It is flexible: You choose –                                         • The handbook aims to help you make some important
                                                                                       • How much to save in addition to the bank’s contributions,            decisions which will affect your retirement savings. You
                                                                                       • How your contributions are invested, and                             may feel comfortable making these decisions yourself
                                              Benefits at retirement     22                                                                                   or you may wish to seek financial advice. See page 29
                                                                                       • How to take your benefits at retirement.
                                                                                                                                                              for more details about financial advice.
                                                                                       It is cost effective: You automatically receive tax relief on your   • The information in this handbook is based on our
                                              The State Pension          24
                                                                                       contributions at your highest rate of income tax (up to Revenue        understanding of tax regulations and legislation in
                                                                                       limits). Please note: The bank meets the Scheme’s administration       force at the time of publication. The provisions may
                                              Benefits on death          25            costs and you pay the investment Annual Management Charges.            be changed if required by amendments in legislation,
                 Further information     28                                            It gives you investment choice: There are two investment               taxation, Revenue practice, or bank policy.
                                              Benefits on leaving
                                              service and absence        26            approaches to choose from and flexibility within each approach.      • There are other more formal documents (Trust Deeds
                 Trustees and advisers   30                                            This aims to offer something for everyone.                             and Rules and policies for example) which are the
                                                                                       It gives you and your family financial protection: The                 legal documents that govern the Scheme. You can
                                                                                       Scheme provides a death-in-service lump sum benefit, with              request a copy of these at any time. Contact the
                 Key terms               31
                                                                                       the flexibility to increase or decrease this benefit through the       Scheme Administrator for details (see page 29).
                                                                                       MyBenefitChoices flexible benefit website on an annual basis.        • If there is any difference between the information in
                                                                                                                                                              this handbook and the more formal documents
                                                                                       This handbook gives you an overview of how the Scheme works,           governing the Scheme, the more formal documents
                                                                                       its features, and other details you need to help you get the most      shall take precedence.
                                                                                       out of your membership and manage your Retirement Account.

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Stay on track retirement - Your Scheme Handbook - Ireland Investment Profiler
The Scheme at a glance                                                                                                                           The 3-step plan
                         You join the Scheme and a Retirement Account is set up in your name
                                                                                                                                                     You need to prepare for retirement. And you need to check regularly that you are heading
    The bank contributes to your Retirement Account                                                                                                  in the right direction. The following three simple steps should help you on your way.
    The amount depends on your length of service and how much you contribute. The bank contributes a minimum of 6% of your
    Salary and will then match certain contributions €1 for €1, in line with your length of service, subject to certain limits. See page 8           Remember that it is not about saving more than you can afford or becoming an investment expert. It is about
    for more details.                                                                                                                                having a plan, making the right choices for your personal circumstances and checking your progress regularly.

    You can contribute to your Retirement Account to increase the benefits you are likely to receive when you retire                                  1    Set a target
    You can make voluntary contributions on the MyBenefitChoices flexible benefit website, either:                                                         How much will you need to live on each year when you stop working?
    • during the MyBenefitChoices Annual Enrolment period each November, or                                                                                Setting yourself a target will help you focus and keep on track.
    • at any time during the year. See page 8 for more details.                                                                                            • Once you have set a target, you need to see if your estimated pension savings will meet your needs at
                                                                                                                                                              retirement. You receive an annual benefit statement from the Scheme which will help you see if you are on
    You can also make Additional Voluntary Contributions at any point during the year. Additional Voluntary Contributions are
                                                                                                                                                              track. And you can check the value of your Retirement Account online at any time; see page 7.
    contributions paid outside of MyBenefitChoices.
                                                                                                                                                           • If you think your retirement savings will fall short of your target, think about how to close the gap.
                                                                                                                                                              Acting on Step 2 and 3 below can make a big difference.
    You choose how to invest your Retirement Account
    The Scheme offers you two ways of managing your investments and a range of funds. See page 10 for more details.                                          Do not forget to consider any other sources of potential income when you retire. For example,
                                                                                                                                                             you may have another pension plan and a State Pension and your spouse may also have a pension.
                                     Value of your Retirement Account you have built up

                                  Retirement benefits for you/your family and dependants                                                              2    Save as much as you can afford
                                                                                                                                                           Think about how much you can save in your Retirement Account to help meet your target.
       If you leave the Scheme…                     When you take your benefits…                                  If you die…                              The Scheme is a great way to provide for your future, and your savings receive an extra boost from the bank:
                                                                                                                                                           • You automatically receive tax relief on your contributions at your highest rate of income tax
    …and have less than 1 year of                   …you can choose to:                            …before retirement while still                             (up to Revenue limits).
    Qualifying service, you can:                    • Take a lump sum (some of which               employed by the bank:                                   • The more you contribute, the more the bank contributes, subject to certain limits (see page 8).
    • Receive a refund of the value of                may be tax free).                            • The value of your Retirement                          • You can change your level of voluntary contributions on the MyBenefitChoices flexible benefit website
      your own contributions (excluding             • Buy an annuity (known as a                     Account at the date of payment is                        either during the MyBenefitChoices Annual Enrolment period each November or at any time during
      the bank’s contributions) less tax,             pension) which provides a regular              paid to your Estate. You will also                       the year. You can also make Additional Voluntary Contributions outside of MyBenefitChoices at any time.
      or                                              income.                                        receive:                                                 See page 8 for details.
    • Transfer the value of your own                • Take a taxable cash lump sum.                  - 8 times your Salary at the date
      contributions (excluding the bank’s                                                               of death, or                                         Use the Pension Projection Tool tool on the Invesco pensions website (see page 7) to see the
                                                    • Move to an Approved Retirement
      contributions) to another approved                                                             - You can choose a different level                      difference that changing contribution levels has on your estimated pension.
                                                      Fund (ARF).
      pension plan.                                                                                     of life assurance cover through
                                                    See page 22 for more details. Please
                                                                                                        MyBenefitChoices.
                                                    note not every option is available to all
    …and have 1-2 years of                          members and will depend on Revenue                                                                3    Make your money work harder
    Qualifying service, you can:                    rules and limits.                              …after leaving the bank as a
                                                                                                                                                           How you invest your Retirement Account directly affects its value when you retire.
    • Receive a refund of the value of                                                             Deferred Member:
      your own contributions (excluding                                                                                                                    As a result it is important to make sure you are not missing out on potential valuable investment returns.
                                                                                                   • The value of your Retirement
      the bank’s contributions) less tax,                                                            Account at the date the payment                       Before you make an investment choice, you need to consider the options available
      or                                                                                             is made will be paid to your                          and what is right for your personal circumstances. See page 10 for more information.
    • Transfer the full value of your                                                                dependant(s) before your normal                       What is right for you will depend on a number of factors, including your age and attitude,
      Retirement Account (including your                                                             retirement age.                                       and approach to risk and control.
      own and bank contributions) to
      another approved pension plan.
                                                                                                   …after having taken your benefits                         Use the Investment Profiler at www.irelandinvestmentprofiler-bofa.com to see what sort of
                                                                                                   from the Scheme in retirement:                            investor you are and what may be right for you.
    …and have more than 2 years of                                                                 • The benefits will depend on the
    Qualifying service, you can:                                                                      decisions you made when you
    • Leave the full value of your                                                                    retired.
      Retirement Account (including your
                                                                                                 *Important note: The Revenue currently only
      own and bank contributions) in the
                                                                                                   allows tax-free lump sums up to a maximum
      Scheme, or
                                                                                                   of four times final remuneration plus the value
    • Transfer the full value of your                                                              of your voluntary contributions and Additional
      Retirement Account (including                                                                Voluntary Contributions in your Retirement
      your own and bank contributions)                                                             Account. Death benefits in excess of this
      to another approved pension plan.                                                            amount must be used to secure an income for
                                                                                                   your dependant(s).

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Stay on track retirement - Your Scheme Handbook - Ireland Investment Profiler
Joining                                                                                                                             Managing your
                                                                                                                                        Retirement Account online
    When you join the Scheme and eligibility                          Steps to take when joining the Scheme                             Already registered?                                            Not yet registered?
    Employees of the bank over 18 and under 65, and who are not       When you join the Scheme, a Retirement Account is set up          Logging on from the bank’s network?                            Logging in from the bank’s network?
    members of any other Bank of America pension arrangements,        in your name. You will then need to complete the following        Use Simplified Sign On (SSO):                                  • Use the links on HR Connect (see opposite).
    are eligible to join the Scheme.                                  four actions:                                                     • Use the links on HR Connect > Benefits > Financial >         • Input your unique Member Number (you received in the post)
    If you meet the conditions above, you will be automatically                                                                           Bank of America Ireland Pension Scheme.                        and follow the short registration process to generate
    enrolled into the Scheme from the first day of your third month
                                                                      1                                                                 • Your standard ID number (or NBK) and password will             a password.
    of employment. If you join the bank under age 18, this would be       Choose how much to contribute.                                  identify you.                                                • Once complete, you will be able to access your Retirement
    the first day of the month after your 18th birthday if later.         You will receive an email within a week of joining            Logging on from outside the bank’s network?                      Account on the Invesco pensions website instantly through
                                                                          with enrolment details and a PIN for MyBenefitChoices,        • Go to www.invescoonline.ie/boa                                 SSO. You will need your unique Member Number and
    Electing not to join the Scheme                                       the bank’s flexible benefits programme. You then              • Log in with your Member Number and password.
                                                                                                                                                                                                         password for access outside of the bank’s systems.
    It is not a condition of employment that you join the Scheme          make your voluntary pension contribution choice                                                                              Logging on from outside the bank’s network?
    for retirement benefits. However, if you choose not to                on the MyBenefitChoices website by using the links on                                                                        • Go to www.invescoonline.ie/boa
    join the Scheme, the bank will not contribute to any other            SSO on HR Connect > Benefits > Quick Links > Manage
                                                                                                                                                                                                       • Input your unique Member Number (you received in the post)
    pension arrangement on your behalf and you will not receive           your benefits.                                                   Accessing your Scheme details online will give                and follow the short registration process to generate
    an adjustment to your salary to reflect the loss of employer          Remember: You can make changes to your voluntary                 you control and flexibility over your retirement              a password.
    contributions. You will however still remain covered for              contribution level either during the MyBenefitChoices            planning. You will be able to:                              Forgotten your unique Member ID and/or password?
    death-in-service benefits.                                            annual enrolment period each November or at any time
                                                                                                                                           • View the value of your Retirement Account.                Contact the Scheme Administrator – see page 29.
    If you choose not to join the Scheme and later change your            during the year; see page 31 for more details.
                                                                                                                                           • See the estimated pension income from your
    mind, you may be able to join the Scheme at a later date but
                                                                                                                                              Retirement Account.
    only with the consent of the bank and the Trustees. Contact       2
    the Scheme Administrator for further information; see page 29
                                                                                                                                           • Review and update how your Retirement Account is
                                                                          Register to manage your Retirement                                  invested at any time.
    for contact details.
                                                                          Account online.                                                  • Update your Expression of Wish details.
    Transferring in benefits from a previous                              See the next page for details of how to register, and            • Use the Pension Projection Tool to see the effect that
                                                                          page 29 to contact the Scheme Administrator, Invesco.              making different contribution choices will have on your
    pension scheme
                                                                                                                                             benefits from the Scheme.
    The Scheme may accept transfers in from other similar                                                                                  • Access useful Scheme information, including
    retirement arrangements, subject to various requirements being    3                                                                      Fund Factsheets.
    met. You may wish to seek financial advice (see page 22 for
                                                                          Choose how to invest your
    details) before transferring your benefits. Contact the Scheme
    Administrator for further details (see page 29).                      Retirement Account.
                                                                          See page 10 for more information on your investment
    Information for EU Outgoing Workers                                   options. Once you have registered for online administration
                                                                          (Step 2) you can make your choice online and change it at
    You are an Outgoing Worker if you joined the bank on or after
                                                                          any time.
    13 September 2019, your most recent employment was in another
    EU member state and you were an active member of your previous        If you do not make an active decision, your Retirement
    employer’s pension scheme.                                            Account will be automatically invested in the Lifestyle
                                                                          approach.
    If you wish to find out more about the rights of Outgoing
    Workers, please see page 29 to contact the Scheme
    Administrator, Invesco.                                           4
                                                                          Nominate who will receive your benefits in
                                                                          the event of your death.
                                                                          Once you have registered for online administration (Step
                                                                          2) you can make your Expression of Wish choices online.
                                                                          Alternatively, you can complete and return a paper form –
                                                                          also available on the Invesco pensions website. Remember:
                                                                          It is important that you keep your nominations up to date –
                                                                          particularly if your personal circumstances change. You can
                                                                          update your details at any time.
                                                                          The Trustees of the Scheme will consider the nominations
                                                                          on your Expression of Wish form (but please note that they
                                                                          are not binding on the Trustees) before paying out death
                                                                          benefits at their discretion.

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Stay on track retirement - Your Scheme Handbook - Ireland Investment Profiler
Contributions
    Saving for retirement may not be a priority for you – particularly if retirement seems a long                                         Examples
    way off. But the more you save and the earlier you start, the higher your benefits are likely
    to be when you retire. The tax relief available for retirement savings makes it worthwhile, no
                                                                                                                                             Laura, 26, is a basic-rate tax payer (20%) and                       Sean, 47, is a higher-rate tax payer (40%) and
    matter what age you are.                                                                                                                 has a Salary of €20,000. She has worked for the                      has a Salary of €50,000. He has worked at the
                                                                                                                                             bank for 3 years.                                                    bank for 17 years.
    Bank contributions                                                                       The bank pays            The bank pays
    When you join the Scheme for retirement benefits, the bank              You pay        (less than 15 years’     (15 or more years’    Laura decides to pay 3% of her Salary to her             3%            Sean decides to pay 8% of his Salary to his         8%
    contributes a minimum of 6% of your Salary.                                            service completed)       service completed)                           Retirement Account.                                                  Retirement Account.
    In addition, the bank will then match certain voluntary                    0%                    6%                     6%
    contributions you make to the Scheme, €1 for €1, in line with
                                                                               1%                    7%                     7%
    your length of service. This is set out in the table opposite.
                                                                               2%                    8%                     8%                       Laura’s gross pay would reduce by                                     Sean’s gross pay would reduce by
    Your voluntary contributions will attract additional                                                                                                                  €600 a year.
                                                                                                                                                                                                  €600                                       €4,000 a year.
                                                                                                                                                                                                                                                                   €4,000
    bank contributions:                                                        3%                    9%                     9%
    • Up to 6% of your Salary if you have less than                            4%                    10%                   10%
       15 years’ service, or                                                                                                                                                                                         The bank will contribute €7,000 a year to
                                                                               5%                    11%                   11%                 The bank will contribute €1,800 a year to
                                                                                                                                                                                                                   Sean’s Retirement Account – the minimum
    • Up to 9% of your Salary if you have more than                                                                                         Laura’s Retirement Account – the minimum
       15 years’ service.
                                                                               6%                    12%                   12%
                                                                                                                                          contribution of €1,200 (6%), and an additional
                                                                                                                                                                                                 €1,800          contribution of €3,000 (6%) and an additional    €7,000
                                                                               7%                    12%                   13%                                                                                 matching contribution of €4,000 (8%), as Sean
    Please note: Service with legacy organisations (as set by                                                                                       matching contribution of €600 (3%).
                                                                                                                                                                                                               has been with the bank for more than 15 years.
    the bank) counts towards the 15-year continuous service                    8%                    12%                   14%
    requirement for higher matching.                                          9%+                    12%                   15%              Therefore a total of €2,400 a year will now                          Therefore a total of €11,000 (22%) a year
                                                                                                                                                  go into Laura’s Retirement Account.
                                                                                                                                                                                                 = €2,400      will now go in to Sean’s Retirement Account.
                                                                                                                                                                                                                                                                 = €11,000
                                                                         Please note: All percentages are of the member’s Salary.
    Your contributions
                                                                                                                                          Contributing 3% costs Laura just €480 a year (in terms of            Contributing 8% costs Sean just €2,400 a year (in terms of
    Voluntary contributions                                              Please note:                                                     take-home earnings) due to tax relief on her contributions           take-home earnings) due to tax relief on his contributions
    You do not have to contribute to the Scheme. You may, however,       • Contributions are subject to Revenue limits – see the next     at her marginal rate of income tax.                                  at his marginal rate of income tax.
    contribute a percentage of your Salary on a voluntary basis             page for more details.
    through MyBenefitChoices at any point during the year, which         • You can choose how to invest voluntary contributions
                                                                           and Additional Voluntary Contributions.                        Tax-relief limits                                                    Remember:
    will be invested in your Retirement Account. These voluntary
    contributions will attract additional bank contributions, up to      • You can make voluntary contributions through                   Based on current legislation and Revenue rules, any contributions    The benefits you will receive will depend on the:
    certain limits, as set out in the table on the right.                  MyBenefitChoices at any point during the year.                 you make (voluntary contributions and Additional Voluntary           • Value of your Retirement Account (which in turn depends on
                                                                         • To make Additional Voluntary Contributions, please contact     Contributions) get full tax relief at your marginal rate of income     the amount paid in by the bank plus your contributions, and
    As you can see, if you are not making voluntary contributions to                                                                      tax, up to the limit that corresponds to your age in the following
                                                                           the Scheme Administrator – see page 29 for contact details.                                                                           how the funds in which you choose to invest perform), and the
    the Scheme, you are missing out on potential additional bank                                                                          table. This does not include the contributions the bank pays.
    contributions. These could make a big difference to your future                                                                                                                                            • Cost of buying benefits (such as a pension) when you retire.
    lifestyle. Use the Pension Projection Tool on the Invesco pensions                                                                                   Age                     Maximum contribution          The value of your Retirement Account is used to provide your
    website (see page 7) to see the difference that changing                Important:                                                                                                                         benefits at retirement.
    contribution levels has on your estimated pension.                                                                                        (in the relevant tax year)           (as a % of earnings)
                                                                            Both terms used by the bank to describe your
    You can make voluntary contributions on the MyBenefitChoices            contributions i.e. voluntary contributions and Additional               Up to age 30                           15%
    website – see page 31 for details.                                      Voluntary Contributions are treated the same by                         Age 30 to 39                           20%
                                                                            the Revenue (and the Revenue usually refer to all
                                                                            voluntary member contributions as Additional Voluntary                  Age 40 to 49                           25%
    Additional Voluntary Contributions
                                                                            Contributions). This means for example that:                            Age 50 to 54                           30%
    You also have the opportunity to further increase your Retirement       • You are eligible to transfer voluntary contributions and/             Age 55 to 59                           35%
    Account by paying Additional Voluntary Contributions which                 or Additional Voluntary Contributions to an Approved
    do not attract matching contributions from the bank. These                                                                                     Age 60 or over                          40%
                                                                               Retirement Fund (see page 23 for full details) and/or an
    Additional Voluntary Contributions are typically paid outside of           Approved Minimum Retirement Fund, and
    MyBenefitChoices directly to the Scheme Administrator at any                                                                          Your total pension contributions (including those made to any
                                                                            • Both voluntary contributions and/or Additional Voluntary
    point during the year. These can be paid regularly but are more                                                                       other pension arrangements) are also subject to a tax-relief limit
                                                                               Contributions are taken into account when calculating
    usually lump sum payments.                                                                                                            on your earnings (including income from sources other than the
                                                                               any tax-free cash lump sums at retirement.
                                                                                                                                          bank) of €115,000 based on current legislation.
                                                                                                                                          More information and updates on the maximum tax-relief limits
                                                                                                                                          for your contributions and annual earnings limits can
                                                                                                                                          be found at www.revenue.ie.

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Stay on track retirement - Your Scheme Handbook - Ireland Investment Profiler
RISK                                         Missed opportunity risk
     There are two ways you can invest your Retirement Account. Your choice may be
     influenced by your age and your approach to investment risk, as well as how much control                                                                                              The risk that you are too cautious with your investments. This could mean
                                                                                                                                              Your investment choice will                  that you end up with less in your Retirement Account at retirement than you
     you want over your Retirement Account.                                                                                                   depend on your personal                      could have had if you had made different investment choices.
                                                                                                                                              circumstances. Before you
     The value of your Retirement Account depends on:                    Your choices                                                         decide, it is important that you             Inflation risk
     1. Contributions paid into your Retirement Account, and                                                                                  understand the importance
                                                                                                                                                                                           The risk that your investment returns are lower than inflation, meaning the
     2. Investment returns achieved on these contributions.
                                                                         Choosing an investment approach                                      of risk and control when it comes
                                                                                                                                                                                           ‘real’ value of your Retirement Account goes down. Inflation risk is generally
                                                                         You can either choose the Lifestyle approach or one or more of       to making your decision. This                higher with investments that take lower investment risk, like cash, which
     Therefore, it is essential that you understand your investment
     options, so that you can make the right decision for you and your
                                                                         the Freestyle funds.                                                 section sets out full details.               typically generate lower returns in the long term although generally offer a
     personal circumstances.                                             The Lifestyle ‘do it for me’ approach is where the day-to-day        What does risk mean to you? Is it the        higher level of protection.
                                                                         investment decisions are made on your behalf. The Freestyle          value of your retirement savings falling?
     Helpful tools                                                       ‘do it yourself’ approach allows you to select investment funds      Or could it be your retirement savings       Investment or capital risk
                                                                         yourself.                                                            not keeping up with inflation? Risk comes
     • Find out what sort of investor you are and what options may                                                                            in different forms and each type of          The risk that your investments will fall in value. It is what most of us think
       be right for you at www.irelandinvestmentprofiler-bofa.com.       The following pages set out simple steps to help you choose                                                       of when we think of risk. Different types of assets carry different levels
                                                                                                                                              investment has the potential to deliver
     • Access the Fund Factsheets on the Invesco pensions website        what’s right for you. The most important thing is that you take                                                   of investment risk, for example, equities have higher investment risk,
                                                                                                                                              certain levels of return, but has certain
       (see page 7).                                                     control and review your choices regularly.                                                                        and returns are more likely to fluctuate compared to a more predictable
                                                                                                                                              risks attached. Here is an overview of the
                                                                                                                                              different types of risk that you should      investment like cash. The key thing to remember when considering
                                                                         Changing your investments                                            consider when deciding how to invest         investment risk is that it also has a link to potential returns. As a general
       Financial advice                                                  You can change how your Retirement Account is invested at any        your Retirement Account.                     rule, the lower the investment risk, the lower the potential return and vice
       The Scheme Administrator, Trustees and the bank cannot            time on the Invesco pensions website; see page 7 for details.                                                     versa. So, while cash or bonds may appear safer in terms of investment risk,
       give you financial or investment advice. If you are not sure                                                                                                                        you could also be missing out on higher returns, especially if you are a long
                                                                         Please note:
       what is right for you, we strongly recommend you get                                                                                                                                way from retirement.
                                                                         • If you choose the Freestyle approach, you can choose
       financial advice. See page 22 for more details.                      different investment funds for your existing and future assets.
                                                                         • You can currently change your investment choices                                                                Conversion risk
                                                                            without charge.                                                                                                The risk that your Retirement Account will buy less income in retirement
                                                                                                                                                                                           than you expect. The cost of converting your Retirement Account into an
                                                                                                                                                                                           annual income is impacted by some of the same factors that impact bond
                                                                                                                                                                                           returns. You can help reduce conversion risk by investing in funds that
                                                                                                                                                                                           contain bonds as you approach retirement. It is a particularly important
                                                                                                                                                                                           risk to consider as you get closer to your retirement. Please also note that
                                                                                                                                                                                           conversion risk will also apply for conversion of your Retirement Account
                                                                                                                                                                                           into another asset class – cash, for example.

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Stay on track retirement - Your Scheme Handbook - Ireland Investment Profiler
Your risk profile
     Your risk profile: You now need to consider how much investment risk you are comfortable                                                The graphics below show some circumstances that might indicate whether you have a
     taking. Generally, the more investment risk you are able to take, the greater the potential                                             higher, medium or lower ability to take investment risk. These are broad categorisations
     to grow your savings over the longer term.                                                                                              but will get you thinking about how much investment risk you are in a position to take.

     • Your age. One important factor to consider is your age.
         Generally, the younger you are and the further you are from
         retirement, the more risk you are likely to be able to take. This         You may have a higher ability to take                            You may have a medium ability to take                            You may have a lower ability to take
         is because if the value of your Retirement Account falls in the          investment risk if some or all of these                           investment risk if some or all of these                         investment risk if some or all of these
         short term, you should still have sufficient time to reconsider                       points apply                                                      points apply                                                    points apply
         your level of contributions and/or your investment risk profile,
         or for markets to recover to offset any loss. The closer
         you are to retirement, the more you may want to consider
         protecting the value of your Retirement Account and so may
         find investments that take less investment risk more suitable.      Ability to take investment risk                                   Ability to take investment risk                                 Ability to take investment risk
     •   The importance of your retirement savings in the Scheme.            • Retirement savings: You have significant retirement             • Retirement savings: You have retirement income                • Retirement savings: You are relying on your income
         If you expect your retirement benefits from the Scheme to             income from other sources and expect your income                  from other sources but expect your income from the              from the Scheme as your main source of income
         make up only a small part of your retirement income, you              from the Scheme to make up only a small part of your              Scheme to make up a reasonable part of your income              when you retire.
         may be able to take more investment risk with your savings.           income when you retire.                                           when you retire.                                              • Earnings: You expect your earnings to increase
         Conversely, if you expect to rely on your retirement benefits       • Earnings: You are early on in your career and expect            • Earnings: You expect your earnings to fluctuate (for            steadily over your career.
         from the Scheme for a large part of your retirement income,           your earnings to rise quickly.                                    example, rising quickly when you are younger before           • Contributions: You expect to contribute steadily to
         you may prefer to take less investment risk.                                                                                            levelling out, or fluctuating because of the nature of
                                                                             • Contributions: You expect to make significant                                                                                     your Retirement Account and would find it difficult to
     •   Your earnings and disposable income. If your savings in the           contributions to your Retirement Account or                       your job or because of a career break).                         top up your Retirement Account if it falls in value.
         Scheme fall in value, you need to think about how easy it             have other savings, so could afford to top up your              • Contributions: You expect to contribute more to your          • Retirement flexibility: You have little or no flexibility
         would be for you to top up your savings. The more disposable          Retirement Account if it falls in value.                          Retirement Account early on and would find it easier            to delay taking your income from the Scheme,
         income you have, the easier it should be to make up any                                                                                 to top up your Retirement Account when you are
                                                                             • Retirement flexibility: You have flexibility to delay                                                                             and would not be willing to work for longer if your
         shortfalls.                                                                                                                             younger.
                                                                               taking your income from the Scheme or would be                                                                                    Retirement Account falls in value as you approach
     •   Your contributions. How much you can afford to contribute             willing to work for a little longer if your Retirement          • Retirement flexibility: You have some flexibility to            retirement.
         to the Scheme is important. Just as important is when you             Account falls in value near to retirement.                        delay taking your income from the Scheme and would
         are able to contribute, as the longer your contributions are                                                                            be able to work for a little longer, if your Retirement
         invested, the more you should benefit from investment                                                                                   Account falls in value as you approach retirement.
         growth and potential interest. Remember, the more you
         contribute, the more the bank contributes too.
     •   How much flexibility you have about when you retire. The
         more flexibility you have about when you take your retirement
                                                                             Attitude to investment risk                                       Attitude to investment risk                                     Attitude to investment risk
         benefits, the more investment risk you may be able to take.
         This is because if your Retirement Account falls in value,          You are a risk taker by nature; you are comfortable               You are willing to take some investment risk with your          You are cautious by nature and are willing to trade the
         you might be able to work for longer or delay receiving your        investing in the most risky funds and are prepared for your       money but prefer to spread this risk. You accept this could     potential for higher growth in return for much more stability.
         retirement benefits, hopefully giving your savings time to          savings to go up and down in value, sometimes quite sharply.      mean losing out on the potential for higher growth, but you
         recover.                                                            You accept this could mean losing out, but it could also mean     are willing to trade this in return for more stability.
     •   Your attitude to investment risk. Your attitude to taking           making bigger gains.
         investment risk will also influence your decision, although the
         type and level of risk you are comfortable taking may not be
         the same as the risk you are able to take; you may have to
         rein in your adventurous spirit, or step outside of your comfort    Reminder                                                          Remember to consider your age when                              Not sure where to start?
         zone to try and achieve the results you want.                       There are other types of risk that you need to take into          making your investment choice                                   Use the online Investment Profiler at
                                                                             account such as:                                                  As set out opposite, generally, the younger you are and         www.irelandinvestmentprofiler-bofa.com.
                                                                             • Missed opportunity                                              the further you are from retirement, the more investment        Answer five short questions. The results will give you an
                                                                             • Inflation                                                       risk you are likely to be able to take. The closer you are to   indication of your attitude to risk and control and will help
                                                                             • Conversion                                                      retirement, the more you may want to consider protecting        you consider an investment option that may be right for
                                                                                                                                               the value of your Retirement Account.                           you until you reach age 55 when you will also need to
                                                                             See page 11 for more details.
                                                                                                                                                                                                               consider how you plan to access your savings.

12                                                                                                                                                                                                                                                                              13
Stay on track retirement - Your Scheme Handbook - Ireland Investment Profiler
Now that you understand more about risk and have considered where you are on the risk
     ‘spectrum’, you need to consider how actively involved you want to be in investing your
     Retirement Account.
     The approach you take will depend on how much control you want, how much time you are prepared to spend
     managing your investments, and how confident you are about making investment decisions.

     Freestyle                                                                                                                              Lifestyle
     A ‘do it yourself’ approach where you choose and manage a combination of the available funds depending                                 A ‘do it for me’ approach – known as Lifestyle – where the funds in which your Retirement Account is invested, and the proportion held
     on how long you have until you retire.                                                                                                 in each fund, change automatically during your working life according to how far you are from retirement.

     Why it might be good for you                                        Why it might not be good for you                                   Why it might be good for you                                          Why it might not be good for you
     Freestyle puts you in control by letting you choose the funds       • It takes more active involvement and decision making than        • You do not need to be as involved in the management of your         • If you prefer to take more control over how your Retirement
     you believe are right for you, and change them as and when it         the Lifestyle approach.                                            Retirement Account compared to the Freestyle approach.                Account is invested and the types of funds that you invest in,
     suits you.                                                          • You need to think about how you want to invest your              • Your investments follow an automatic pre-determined                   the Freestyle approach may be more suitable for you.
                                                                           Retirement Account from the start and check regularly that         strategy – phasing from funds with higher investment risk to        • Freestyle may also be more suitable for you if you plan to take
                                                                           your investments are on track.                                     lower investment risk, in the years leading up to your normal         the value of your Retirement Account at a different age to your
                                                                         • You have to ensure that you move your Retirement Account           retirement age (65).                                                  normal retirement age (65). See page 16 for more details.
                                                                           into funds that take less investment risk in the years leading   • During the first part of the ‘growth’ phase, you take a higher
                                                                           up to your retirement, if you wish to provide more security        level of investment risk until 30 years before your normal
                                                                           around its value.                                                  retirement age (65), in order to potentially achieve a high
                                                                                                                                              level of growth. You then gradually reduce volatility, although
                                                                                                                                              still aiming for growth, until 10 years before your normal
                                                                                                                                              retirement age (65).
                                                                                                                                            • As you approach retirement, you will have three options to
                                                                                                                                              choose from to ensure your Retirement Account is invested in
                                                                                                                                              line with how you plan to take your benefits at retirement.

14                                                                                                                                                                                                                                                                                    15
Stay on track retirement - Your Scheme Handbook - Ireland Investment Profiler
Your Freestyle options
     The funds available through Freestyle are summarised below.
     The name of each fund describes the asset class in which it invests, or the principles on which it is based. It
     means that the Trustees can monitor and manage the funds, and make any necessary changes quickly and
     efficiently (if the Trustees consider that changes are appropriate). See page 20 to read more about the different                     More about active and passive funds                            Additional expenses
     asset classes.                                                                                                                        The two equity funds shown in the table on page 16 are         Most fund managers have to pay expenses such as auditors,
                                                                                                                                           described as ‘active’ and ‘passive’.                           legal fees and custody fees. Any additional expenses are
                                                                                                                                           Active funds aim to outperform a market benchmark by           taken from the underlying fund and are reflected in the
      Fund name             What it currently invests in…                         Aims to…                                          AMC*   investing in a selection of investments that the investment    unit price of the fund. They are reviewed regularly and are
                                                                                                                                           manager believes will perform better than the market.          subject to change.
      Equities                                                                                                                      (%)
                                                                                                                                           The investment manager decides which assets to buy
      Active Global         A blend of equity investment strategies that          Provide positive returns above the benchmark             or sell. As returns depend partly on the active involvement
      Equity Fund           are managed actively.                                 equity index over rolling 3-year time periods,           and skill of the manager, typically these funds have higher
                                                                                                                                    0.64
                                                                                  but with lower volatility than a single                  investment charges. Active funds can also be more volatile     Please note: the value of all investment
                                                                                  equity strategy.                                         than passive funds.                                            funds can go down as well as up.
      Passive Global        A blend of global equity market indices               Perform in line with the equity markets                  Passive funds try to replicate a particular benchmark or
      Equity Fund           (i.e. investing in traditional equities which         it tracks on an on-going basis. The blend                index, aiming to achieve the same return. Passive funds
                            are selected and weighted on the basis of             of equities aims to diversify the returns                usually have lower investment charges than active funds.
                                                                                                                                    0.14
                            their market share). The fund also invests in         and reduce investment risk over the long term,
                                                                                                                                           Fund Factsheets for the Freestyle funds are available on the
                            equities selected on the basis of either minimising   when compared with traditional
                                                                                                                                           Invesco pensions website; see page 7 for details.
                            risk or providing additional returns.                 equity markets.
      Ethical Equity Fund   Indexed Global equities, which track an ESG           Perform in line with the ESG focussed
                                                                                                                                    0.16
                            Focussed equity index.                                benchmark index.

      Bonds                                                                                                                         (%)
      Diversified Bond      A range of traditional asset classes such as bonds,   Provide positive returns in the form of income
      Fund                  cash and money market instruments, and uses           and capital growth, over the medium to long
                                                                                                                                    0.34
                            investment strategies based on advanced derivative    term.
                            techniques.
      Pre-Retirement        A blend of indexed bonds, including government        Align with the long-term changes in annuity
                                                                                                                                    0.11
      Bond Fund             and corporates.                                       prices due to interest rates.

      Other types of investments                                                                                                    (%)
      Diversified           Various investment strategies through several fund Provide positive returns over rolling 3-year
      Growth Fund           managers and in a range of asset classes.          time periods with reduced investment risk and
                                                                                                                                    0.61
                                                                               return volatility relative to traditional multi-
                                                                               asset or equity only funds.
      Cash Fund             Money market instruments.                             Achieve a rate of return in line with wholesale
                                                                                                                                    0.10
                                                                                  money market rates.

     * Annual Management Charges (AMCs) correct as at 31 March 2021. The AMC is the annual cost of the fund. It is applied to the market
     value of the relevant fund. It is typically accrued daily and deducted from the price of the fund.
     Please note: the value of all investment funds can go down as well as up.

16                                                                                                                                                                                                                                                                      17
Stay on track retirement - Your Scheme Handbook - Ireland Investment Profiler
Your Lifestyle options
     The flexible Lifestyle option is made up of a combination of the Freestyle funds. The funds                                                                                                                                      When you are aged under 35, which is over 30 years before your normal retirement age
     follow a pre-determined strategy where your investments switch depending on how far you                                                                          Aims to… achieve growth through investing fully in equities
     are away from your normal retirement age.

                                                                                                                                              Growth phase
                                                                                                                                                                      Invests in… • Passive Global Equity Fund

                                                                                                                                                                                                                            When you are aged between 35 and 55, which is within 30 years of your normal retirement age

     More about Lifestyle                                                                                                                                             Aims to… move the equity investment gradually into diversified investments, still with the objective of achieving potential
                                                                          Normal retirement age is age 65. This age determines                                        growth, but also to reduce volatility
     Growth phase: until age 55, you will automatically be invested
     in the growth phase. This phase aims to grow your Retirement         when your investments begin switching between the                                           Invests in… • Passive Global Equity Fund • Diversified Growth Fund
     Account by investing in funds that have the potential for good       growth and pre-retirement phases. This date is fixed for
                                                                          the Lifestyle option.                                                                                                             1. Approved Retirement Fund                                                                                           2. Annuity                                                                                             3. Cash
     return but which typically take more investment risk. Lifestyle
     then transitions into its second phase. See the chart opposite for   If you are planning on retiring at a different age, you may                                                                               When you are aged between 55 and 60, which is between 10 and 5 years of your normal retirement age
     information on which funds the growth phase invests in.              want to consider choosing the Freestyle approach. This
                                                                          allows you to choose when you switch your investments                                       Aims to… extend the potential growth                                                                 Aims to… reduce volatility by moving some of the Retirement Account into asset
     Pre-retirement phase: from age 55, you are automatically
                                                                          from growth funds to funds that will protect the value of                                   period of your Retirement Account                                                                    classes that take a lower amount of investment risk
     invested in the pre-retirement phase.
                                                                          your Retirement Account, as you approach retirement.                                        by continuing to move some of the                                                                    Invests in…
     This phase aims to provide some protection to your Retirement                                                                                                    remaining equity investments into
     Account against sudden falls in value as you approach your                                                                                                                                                                                                            • Passive Global Equity Fund
                                                                                                                                                                      diversified investments

                                                                                                                                              Pre-retirement phase
     normal retirement age (65). This is achieved through gradually                                                                                                                                                                                                        • Diversified Growth Fund
                                                                                                                                                                      Invests in…
     moving it into investments that take less investment risk.           Please note: the value of all investment                                                                                                                                                         • Diversified Bond Fund
                                                                                                                                                                      • Passive Global Equity Fund
     In this phase, you have three options to choose from, depending      funds can go down as well as up.
                                                                                                                                                                      • Diversified Growth Fund
     on how you are planning to use your savings.
     The three options are:                                                                                                                                                                                                                  When you are over 60, which is within 5 years from your normal retirement age
     • Lifestyle – Cash
                                                                                                                                                                      Aims to… reduce volatility through                                                                   Aims to… further reduce volatility and                                                              Aims to… provide further protection
     • Lifestyle – Annuity                                                                                                                                            moving some of your Retirement                                                                       match pension annuity prices through a                                                              to the Retirement Account by moving
     • Lifestyle – Approved Retirement Fund (ARF).                                                                                                                    Account into bonds                                                                                   higher exposure to bonds                                                                            investments into cash
     If you do not make an active decision, you will automatically be                                                                                                 Invests in…                                                                                          Invests in…                                                                                         Invests in…
     invested in the Lifestyle – ARF option. See the charts opposite                                                                                                  • Passive Global Equity Fund                                                                         •  Passive Global Equity Fund                                                                       •  Passive Global Equity Fund
     for more information.
                                                                                                                                                                      • Diversified Growth Fund                                                                            •  Diversified Growth Fund                                                                          •  Diversified Growth Fund
                                                                                                                                                                      • Diversified Bond Fund                                                                              •  Diversified Bond Fund                                                                            •  Diversified Bond Fund
                                                                                                                                                                                                                                                                           •  Pre-Retirement Bond Fund                                                                         •  Cash Fund

                                                                                                                                        How your Retirement Account
                                                                                                                                                                                                                                                                                                                                 Growth                  Pre-retirement                                                               Growth                     Pre-retirement

                                                                                                                                         moves between the funds
                                                                                                                                                                                                                          Growth                     Pre-retirement
                                                                                                                                                                                                 100%                                                                                                 100%                                                                                                   100%

                                                                                                                                                                                                                                                                               % of your Retirement Account

                                                                                                                                                                                                                                                                                                                                                                                   % of your Retirement Account
                                                                                                                                                                       % of your Retirement Account
                                                                                                                                                                                                      80%                                                                                                     80%                                                                                                 80%

                                                                                                                                                                                                      60%                                                                                                     60%                                                                                                 60%

                                                                                                                                                                                                      40%                                                                                                     40%                                                                                                 40%

                                                                                                                                                                                                      20%                                                                                                     20%                                                                                                 20%

                                                                                                                                                                                                      0%                                                                                                      0%                                                                                                  0%
Different types of investment fund                                                                                                      Investment diversification
                                                                                                                                             Investing in different types of investment funds or asset
                                                                                                                                                                                                            More about ‘buying power’ and
                                                                                                                                                                                                            ‘conversion risk’
                                                                                                                                             classes helps to diversify or ‘spread’ investment risk. This   When you retire, you can use the value of your Retirement
                                                                                                                                             diversification means that you are less dependent on the       Account to buy an annuity (otherwise known as a pension)
     The table below gives an overview of the different asset classes in which the Freestyle                                                 performance of any one asset class by spreading the            from an insurer. This income is payable for the rest of your
                                                                                                                                             investment risk and reducing the impact if one or more         life (and that of your spouse if you choose this type of
     funds invest, and sets out how effectively they achieve one of two aims. This will make it                                              asset classes suffer(s) from poor performance.                 annuity).
     clearer how the different types of risk relate to each asset class.                                                                     You can diversify your investments by choosing from the        Typically insurers will invest the money they hold to back
                                                                                                                                             various asset classes available to you through the Freestyle   these annuities in bonds (see page 20 for a description of
     The higher the star rating, the more effective the asset class may be in achieving the respective aim.                                  funds.                                                         bonds). Long-term interest rates (or yields) on bonds are
     The maximum star rating is five.                                                                                                        The Freestyle funds also include a single fund which           an important factor when setting annuity rates. Changes in
                                                                                                                                             provides investment diversification: the updated Diversified   yields on bonds can therefore have an effect on their value
                                                                                                                    Aims to                  Growth Fund. This fund invests various investment              and also on the price of annuities; an increase in yields could
      Asset class                                                                                                                            strategies through several fund managers, and in a range       result in a reduction in the amount you could get for selling
                                                                                                      Deliver long-term   Provide security                                                                  bonds. However, an increase could also result in an increase
                                                                                                                                             of asset classes including equities, bonds, cash and
                                                                                                           growth           and stability                                                                   in the annuity you can buy with your Retirement Account.
                                                                                                                                             alternative assets. Investing in the Diversified Growth
      Equities or shares are stocks in companies. Equities are expected to generate higher rates of                                          Fund therefore offers you the opportunity to diversify the     The opposite is true if yields fall i.e. the value of your
      return in the longer term than bonds or cash, but carry a higher risk because they are more                                            investment of your Retirement Account through one fund.        bonds may increase but the annuity you can buy may
      volatile to fluctuations in the stock market. Equities are generally considered a good way to                                          The Diversified Growth Fund forms a key component of           go down as a result. Investing in bonds in the lead up to
      invest your money in the long term, since you have time to weather the ups and downs of the                                            the Lifestyle approach (see page 18 for more details).         buying your annuity could help to maintain your annuity
      stock market. This differs to absolute return bond funds which aim to achieve growth in all                                                                                                           ‘buying’ power, by linking how your Retirement Account is
      market conditions, albeit typically with lower long-term returns than equity funds.                                                                                                                   invested before your retirement more closely to the types
                                                                                                                                                                                                            of investments used to set annuity rates. This is reducing
      Bonds are loans to a company or government. You typically receive a fixed return on                                                                                                                   ‘conversion risk’ at the point in time you take your annuity
      your investment, or ‘interest’ on the loan, except for index-linked bonds which pay a return                                                                                                          (see page 11 for more details).
      that increases with inflation. Bonds typically give lower returns over a longer period than                                                                                                           Conversely, if your Retirement Account is invested in other
      equities, but they are generally more secure and predictable.                                                                                                                                         types of investment funds that are not invested in such
                                                                                                                                                                                                            a similar way to annuity funds, there is a higher risk that
      Money market and cash refers to a range of money market instruments and cash.
                                                                                                                                                                                                            changes in the value of your Retirement Account will not
      They are considered better at protecting the capital value of your Retirement Account
                                                                                                                                                                                                            be offset by changes in the annuity you can then buy. This
      in the short term than other types of investments, such as equities. However, money market
                                                                                                                                                                                                            ‘conversion’ risk could result in you seeing the amount
      and cash typically provide lower rates of return in the long term and there is
                                                                                                                                                                                                            you can buy as an annuity decreasing if the funds you are
      still a risk that they can go down in value from time to time.
                                                                                                                                                                                                            invested in fall in value as you approach your retirement.
                                                                                                                                                                                                            The opposite is also true, in that if your Retirement
                                                                                                                                                                                                            Account suddenly increases in value and annuity rates stay
                                                                                                                                                                                                            the same, you will be able to buy more annuity/pension.

20                                                                                                                                                                                                                                                                            21
Benefits at retirement
     When you retire, your retirement benefits will depend on:                                                                                      Options at retirement
     • How much you and the bank contribute during your employment;
     • How well the funds in which you choose to invest perform; and                                                                                               Option             Description                                                 Factors to consider
     • How you choose to use your Retirement Account.
                                                                                                                                                    Lump sum       You may be able    The lump sum you can take is subject to limits that are     The absolute maximum level of tax
                                                                                                                                                                   to take a cash     imposed by Revenue and the amount in your Retirement        relieved lump sum benefit that can
     Taking your savings                                                                                                                                           lump sum from
                                                                                                                                                                   your Retirement
                                                                                                                                                                                      Account. It will also vary with the circumstances of your
                                                                                                                                                                                      retirement, your service with the bank and benefits from
                                                                                                                                                                                                                                                  currently be taken from all sources
                                                                                                                                                                                                                                                  is €500,000, and for the 2020 tax
                                                                                                                                                                   Account.           other sources, and there are two ways of calculating the    year, lump sum benefits are taxed
     Taking your savings early                                                   Information for EU Outgoing Workers
                                                                                                                                                                                      maximum lump sum benefit you are entitled to, as set        as follows:
     Your normal retirement age is 65. With bank’s consent, you may              If you’re an Outgoing Worker and you are leaving the Scheme:                                         out below:                                                  • The first portion, up to €200,000
     retire from age 50. You may also retire early by leaving the bank           • With a preserved benefit (you have two or more years’                                              • Service: The maximum lump sum benefit is 1.5 times            can potentially be taken tax free.
     (at any time) if you are in ill-health or are disabled (subject to the          Qualifying Service), you are entitled to a preserved benefit                                         your earnings from the bank when you retire. If you         However, this would depend on
     Trustees’ agreement). In the case of ill-health or disability, the              retained in the Scheme in all circumstances except wind-up                                           have short service or retire before normal retirement       the level of lump sum benefits
     bank operates a separate Income Protection Plan. In most cases              • Without a preserved benefit (you have less than two years                                              age, the maximum lump sum you may take will be              you may have taken from other
     the terms of the Income Protection Plan will apply until age 65.                Qualifying Service), you may be entitled to a refund of                                              smaller than 1.5 times your earnings and depend on          sources.
                                                                                     your pension contributions plus the banks contributions                                              certain service requirements.                           • Sums between €200,001 and
     Deferring the payment of your savings                                           made in respect of periods of employment falling after                                           • Fund size: The maximum lump sum benefit is 25% of             €500,000 are liable to the
     With the bank and Trustees’ consent, you may be able to defer                   13 September 2019. Tax is deducted at a rate of 20%.                                                 your Retirement Account.                                    standard rate of income tax in
     taking your Scheme savings until after your normal retirement               If you wish to find out more about the rights of Outgoing                                                                                                            force at the time of payment,
     age (65).                                                                   Workers, please see page 29 to contact the Scheme                                                                                                                    currently 20%.
                                                                                 Administrator, Invesco.
                                                                                                                                                    Approved       You may be         An ARF gives you the opportunity to continue to invest      Unlike an annuity income, ARF
     Your choices
                                                                                                                                                    Retirement     able to transfer   all or part of your Retirement Account in a tax-efficient   income is not guaranteed to last
     When you retire, you can decide how to use your Retirement                                                                                     Fund (ARF)     all, or part, of   way after you retire, with the added flexibility to         forever. If the rate at which income
     Account. You can choose one or more of the following options:                                                                                                 the balance of     withdraw cash as required.                                  is drawn down exceeds the growth
                                                                                                                                                                   your Retirement    You can withdraw cash whenever you wish, subject to         achieved, then the ARF could
                                                                             Take a lump sum
                                                                                                                                                                   Account to         the terms of the ARF provider.                              ultimately be reduced to nothing.
                                                                      (some of which may be tax free                                                               an ARF.            You don’t pay any tax on investment income or capital       This option is an investment vehicle
                                                                         subject to Revenue limits)                                                                                   gains while money is invested in the ARF. Once the          and you should get financial advice
                                                                                                                                                                                      proceeds are withdrawn, they are subject to income tax.     before investing in an ARF.
                                                                                                                                                                                      A minimum tax charge is payable each year on the value
                                                                                   ^                                                                                                  of an ARF (calculated based on an assumed withdrawal        This option is not open to all
                                                                                                                                                                                      of 4% to 6% of the ARF value, depending on your age         members and, in order to exercise
                           Buy an annuity for you and/                                                                   Move to an                                                                                                               it, a member must be able to
                           or your dependants (known                     Retirement Account                       Approved Retirement Fund                                            and ARF value), irrespective of whether you withdraw
                                                            ^

                                                                                                       ^

                                                                                                                                                                                      any money from the ARF.                                     demonstrate that they have a
                                  as a pension)                                                                            (ARF)
                                                                                                                                                                                                                                                  certain minimum level of income
                                                                                   ^                                                                                                  An ARF can become part of your estate on your death.
                                                                                                                                                                                                                                                  from other sources.

                                                                                                                                                    Taxable cash   You may be         This will only be possible in restricted circumstances, and for many members it is not an
                                                                                                                                                    sum            able to take       option. In many cases taking the balance of your Retirement Account as taxable cash may
                                                                              Take a taxable                                                                       the balance of     not be tax effective.
                                                                                cash sum                                                                           your Retirement    Your Retirement Options Statement will detail whether you can use this option. If you are
                                                                                                                                                                   Account as         able to take the balance of your Retirement Account as taxable cash, this would normally
                                                                                                                                                                   taxable cash.      be liable to marginal rate tax, PRSI and the Universal Social Charge (USC), based on your
     Not every option is available to all members. Your options will depend on your personal circumstances.
                                                                                                                                                                                      personal circumstances.
     The level of savings is subject to the amount available in your Retirement Account and to saving limits imposed by Revenue.
     Read on for further details on each of these options.                                                                                          Annuity        You can use        An annuity is a contract with a life assurance company      The amount of income you receive
                                                                                                                                                                   the balance of     that will pay you a guaranteed regular income in            from the annuity depends on
                                                                                                                                                                   your Retirement    retirement in return for part of your Retirement Account.   a number of things such as:
       Remember:                                                                                                                                                   Account to                                                                     • The amount of money used
       • You do not have to choose how you would like to take your savings until you approach the age at which you want to retire. Please                          purchase an                                                                       to buy the annuity
         note however that how you wish to take your savings may influence how you invest your Retirement Account – see pages 10 to                                annuity.                                                                       • Your age and health
         21 for more information on your investment choices.
                                                                                                                                                                                                                                                  • The cost of purchasing a pension
       • Details about your options will be sent to you as you approach your normal retirement age (65); if you would like to take your                                                                                                              (i.e. annuity rates) at the time
         savings earlier, please contact the Scheme Administrator (see page 29).
                                                                                                                                                                                                                                                     you retire, and
       • It is recommended that you seek financial advice to help you choose the retirement options that best suit your personal needs.                                                                                                           • The options you choose
         For details of how to contact a Qualified Financial Adviser (QFA) in your local area, visit www.ccpc.ie/consumers/money/getting-
                                                                                                                                                                                                                                                     that best suit your personal
         financial-advice/do-you-need-financial-advice. If you choose to engage a QFA, this will normally be at your own expense.
                                                                                                                                                                                                                                                     circumstances at the point
       • When reviewing your options, also consider retirement savings you may have outside the Scheme.                                                                                                                                              of retirement.

22                                                                                                                                                                                                                                                                                         23
The State Pension                                                                                                                          Benefits on death
     In addition to the pension benefits from the Scheme you may be entitled to a State                                                         If you die while employed by the bank                                 Nominating your beneficiaries
     Pension. To qualify for a State Pension (Contributory) you must be aged 66 or over and                                                     If you die in service, a death benefit will be payable equal to:      The Trustees of the Scheme will consider the nominations on
                                                                                                                                                • The value of your Retirement Account at the time the benefit        your Expression of Wish form (but please note that they are not
     have enough Class A, E, F, G, H, N or S social insurance contributions.                                                                                                                                          binding on the Trustees) before paying out death benefits at
                                                                                                                                                    is paid. Plus
                                                                                                                                                    - 8 times your Salary at the date of your death. Or               their discretion. You can update your details online on the Invesco
                                                                                                                                                    - Through MyBenefitChoices you can opt to change your             pensions website or by completing and returning an Expression
     You need to have:                                                      The State Pension is payable at State Retirement Age which is               8 times Salary benefit to an amount between two and           of Wish form (also available on the Invesco pensions website);
                                                                            currently 66.                                                                                                                             see page 7 for details.
     • P aid social insurance contributions before a certain age                                                                                       twenty times your Salary at the date of your death.
     • A certain number of social insurance contributions paid and          An additional allowance for your spouse/partner, known as a                                                                               Please ensure you update your Expression of Wish details if
     • A certain average number over the years since you first              Qualified Adult Allowance, may also be payable. This allowance is   If you die while in retirement                                        your circumstances change (for example if you get married or
        started to pay.                                                     subject to an income test and will not be payable if your spouse/                                                                         divorced, enter a civil partnership or if you have children).
                                                                                                                                                If you die while in receipt of your retirement income, any benefits
                                                                            partner’s, income or capital exceeds levels set annually by the     payable will depend on the decisions you made when you retired.
                                                                            Department of Social Protection. The following rates apply from
                                                                            29 March 2019:                                                      If you die after leaving the bank as a                                   Important notes
                                                                                                                                                                                                                         • As the standard benefit under MyBenefitChoices is
                                                                                                                                                deferred member                                                              eight times your annual Salary, your benefits may be
                                        State Pension                      Increase for                      Total State Pension                If you no longer work for the bank and left your benefits in                 liable to tax.
                                        (contributory)                     Qualified Adult                   (contributory)                     the Scheme, an amount will be paid to your dependant(s) on               •   The Revenue only allows tax-free lump sums up to
                                                                                                                                                your death before your normal retirement age. The value of your              a maximum of four times final remuneration plus
      No spouse / partner               €12,911.60 a year                                                    €12,911.60 a year
                                                                                                                                                Retirement Account at the date of payment is paid to your Estate.            the value of your voluntary contributions and Additional
      Spouse / partner under 66         €12,911.60 a year                  €8,600.80 a year                  €21,512.40 a year                                                                                               Voluntary Contributions in your Retirement Account.
                                                                                                                                                                                                                         •   Death benefits in excess of this amount must be
      Spouse / partner over 66          €12,911.60 a year                  €11,570.00 a year                 €24,481.60 a year                                                                                               used to secure an income for your dependant(s).
                                                                                                                                                                                                                         •   When choosing a level of life assurance benefit that
                                                                                                                                                                                                                             it is right for you, it is vital that you consider your
                                                                                                                                                                                                                             personal circumstances carefully. If you do not have any
        More information about these benefits, other State benefits and the                                                                                                                                                  dependants for example, it may not be appropriate to
        current terms/conditions is available from your local welfare office.                                                                                                                                                have cover of more than four times your annual Salary.
        Alternatively, contact the Department of Employment Affairs and                                                                                                                                                  •   The 8 times (or as appropriate two to twenty times)
        Social Protection at the following details.                                                                                                                                                                          Salary lump sum benefit is subject to insurance
        Address:   Social Welfare Services, College Road, Sligo, Ireland                                                                                                                                                     being available and in place. There also needs to
        Telephone: LoCall: 1890 500 000                                                                                                                                                                                      be satisfaction of any requirements of the insurer,
                                                                                                                                                                                                                             including in some cases underwriting requirements.
        Online:    www.welfare.ie
                                                                                                                                                                                                                         •   Once you reach 65 your Life Assurance cover will cease.
                                                                                                                                                                                                                             If you wish to extend your cover to age 70, you will be
                                                                                                                                                                                                                             required to complete full underwriting by the insurer.

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