In order to receive any benefit payable to you, you must complete a retirement option form which is available by contacting the CWPS Team. There are some things that you should note:
- Benefit payments are paid directly from CWPS on behalf of the Trustee
- If you choose a pension that increases, pension increases will be applied at 1 January each year
- Your pension is paid for your life and guaranteed to be paid for at least five years from your date of retirement
- In the event of your death in retirement a 50% spouse’s pension will be paid, if you are married, after completion of the 5 year guarantee period and will be payable for the life of your spouse
- Your benefit options and the amounts payable to you will be based on your current Pension Account details and current actuarial factors
Your pension and income tax
All pensions are subject to income tax and Universal Social Charge deduction on a PAYE basis. When you draw down a pension from CWPS you will require a Certificate of Tax Credits and standard cut off point naming CWPS as your source of income, otherwise you will be taxed at the emergency tax rate. You should contact the Tax Office closest to you. You should have your PPS or RSI number ready when you call the Tax Office. You will be asked for the Registered Employer’s Number of the Construction Workers’ Pension Scheme, this number is 0060801A.
If a once off taxable lump sum is an available option for you this amount will be taxed at the emergency rate of tax and a P45, detailing the amount of tax deducted, will be forwarded to you with your benefit payment. You can then claim back any tax you may be due directly from your local Tax Office. Further details regarding the income process will be forwarded to you at the time of payment of your benefit.
Liability of Universal Social Charge
Pensioner’s should note that they can apply to Revenue for an exemption from Universal Social Charge deductions If their annual taxable income which includes their CWPS pension does not exceed €13,000 for the tax year 2016 (this amount of €13,000 p.a. excludes any benefit payable from the Department of Social Welfare or CE Schemes).
You should contact Revenue directly in order to check whether you are entitled to a Universal Social Charge (USC) exemption on your Tax Credit Certificate.