Buy Out Bond or Personal Retirement Bond
A Buy Out Bond or Personal Retirement Bond is a pension plan which receives a single contribution, usually a transfer payment from your company pension scheme or another personal retirement bond that you have. Once this plan is set up, it becomes your own personal plan in your name. With Buy Out Bonds, you can take your benefits between the ages of 50 and 70 (trustee approval may be required in certain circumstances)
The benefits:
When changing employment, and moving your pension, there’s no need to transfer to your new employer’s scheme.
You choose the investment fund(s) that your money is invested in.
You choose when to take your benefits, subject to Revenue rules.
Any investment growth is tax free.
If you change employment and do not make a decision on what to do with your occupational pension, the current Trustees of the scheme may be entitled to move your benefits into a Buy Out Bond without your consent if:
the company pension scheme is being wound up
the transfer value of your fund is less than an amount set by the pension act
in any other cases where approval is given by the pensions board
When you leave a company pension, you have three choices as to how you use any pension fund to which you are entitled. You can:
leave it invested in your company pension until you retire – please note, in this instance, you may not have control over how your fund is invested
transfer it to the company pension scheme of your new employer where your fund will become subject to the new scheme’s rules and retirement age
transfer it to a Buy Out Bond in your own name