Enhanced Transfer Value Specialists
Situations where we can help:
Recently Featured in:
Discuss Your Enhanced Transfer Value Options
We specialise in helping clients through the Enhanced Transfer Value Process.
We have helped clients who have worked for some of Ireland's largest companies
Have you been offered an Enhanced Transfer Value?
If so, you likely have a decision to make.
You may also be wondering why your former employer has made such an offer.
The main reason is that Defined Benefit schemes are costly to run and are being phased out by many companies.
Therefore, offering an Enhanced Transfer Value can be an attractive option for members while also reducing the scheme’s numbers and liabilities.
It also gives you the possibility of a higher value while potentially accessing a portion of your fund as a tax-free lump sum.
If you’d like to assess your options, you are welcome to contact our team.
Please note – Accessing 25% of your benefits tax-free is not guaranteed. Please speak to one of our team to assess your eligibility.
We contacted Pension Support Line as my wife and I had worked in the same employment and were both sent documentation about enhanced transfer values. After speaking with Eoin, we had a much clearer picture of what options were available to us we were both able to transfer to our own pension arrangements.
Peter & Joanne – Waterford
What is an Enhanced Transfer Value (ETV)?
An Enhanced Transfer Value (ETV) is offered to members as a once-off opportunity to transfer the value of their pension fund.
This is on enhanced terms, meaning the monetary amount offered may be increased as an incentive.
The member has the option to agree to this amount and transfer their pension arrangement. Furthermore, the ETV exercise grants the company and trustees an opportunity to de-risk the current pension scheme.
Process of accepting an Enhanced Transfer Value
Should you wish to accept an Enhanced Transfer Value, this will mean transferring to a separate pension arrangement.
The new pension arrangement is called a Personal Retirement Bond (PRB)
Once in this arrangement, the policy will be in your own name and you will have full control over your investment decisions. Transferring to a PRB will also give you the ability to:
- Access 25% of your pension benefits tax-free
- Use the remaining 75% to purchase an annuity or Approved Retirement Fund (ARF)
Enhanced Transfer Value Calculation | Example
The percentage (%) of the enhancement you have been offered will vary depending on your situation.
This Enhanced Transfer Value is what members are offered to trade in their Defined Benefit (DB) pension arrangement.
Below is an example of how the process may work. In this example we have used an 20% enhancement.
| Original Value | Enhancement Percentage (%) | Enhanced Transfer Value Offered |
| €200,000 | 20% | €240,000 |
In some cases, the percentage may be higher or lower. If you have received an offer and are unsure, feel free to ask us any questions you may have.
Expert Tip
Do not assume that your employer has all your personal information correct. Were you married during your service? Ensure these details have been updated.
If these details are incorrect it could potentially affect your Enhanced Transfer Value.
Benefits of accepting an Enhanced Transfer Value
There are several benefits associated with accepting an Enhanced Transfer Value. Some include:
- Potentially access 25% of your benefits tax-free.
- You may be eligible to access your benefits from age 50.
- Transferring your benefits to a policy in your own name will give you control over investment decisions.
- Access to a higher tax-free lump sum.
- Benefits may be easier to inherit.
- Accepting an Enhanced Transfer Value may be suitable due to health, financial or other circumstances.
We have written another blog regarding the benefits of transferring if you would like a more detailed answer
Drawbacks of accepting an Enhanced Transfer Value
Some of the drawbacks of accepting an Enhanced Transfer Value include:
- Your income is no longer a guaranteed amount.
- After investing your remaining funds, they are at the risk of the market and may drop.
- The decision to transfer out cannot be reversed.
- Often you have a short timeframe to make your decision.
As we see above, there are pros and cons to each decision. Take time, and decide on what suits your personal situation best.
If you are unsure of what option suits you best, we offer a complimentary consultation.
What to do next?
Unfortunately, there is no one-size-fits-all answer when it comes to pensions. Particularly with Enhanced Transfer Values.
Each situation is different as much will depend on the enhancement being offered and the scheme your benefits are currently in.
Transferring out may or may not be the best option. Without knowing specifics it is impossible to assess which route you should take.
It is, for this reason, we offer a complimentary consultation on these services. It gives you a chance to ask any questions you may have and the advisor a chance to discuss potential options.
We are currently quite busy (thankfully)
However, if this is something you may be interested in, feel free to contact our team. We can arrange for you to have a casual chat and see what options may be available.
From here you can decide how you would like to proceed.
Discuss Your Enhanced Transfer Value Options
How do I speak to an advisor to assess my options?
If you would like a free no-obligation chat please leave your information in the contact box or give us a call.
Please note: This website is for information purposes only and should not replace seeking qualified financial advice.
| info@pensionsupportline.ie | |
| Phone | 01 890 3518 |
| Video Call | https://calendly.com/pensionsupportline/pension-support-line |
| In-Person Meeting | Contact Our Team |
Looking for more information?
We specialise in guiding clients through the Enhanced Transfer Value process. If you are looking for more in-depth information, feel free to check out our guides.
If you are one of the many people considering an Enhanced Transfer Value, you are probably scurrying to assess potential options. These Enhanced Transfer Values have been offered to many…
Enhanced Transfer Values (ETV's) are a hot topic at the moment. Perhaps due to a combination of Defined Benefit schemes coming under scrutiny and some companies offering Enhanced Transfer Values…
Need more information?
We send out a short email every Thursday with some tips and information we think may be useful.
Join over 2,000 subscribers who enjoy our weekly tips!
Our team hold a combined 100+ years of industry experience
Call us on 01 890 3518 or fill out our quick contact form
