How is the Fund constituted?
The Fund is a defined benefit scheme for the purposes of the Pension Act 1990, established under irrevocable trust and is approved as an Exempt Approved Fund under Chapter 30, Part I of the Taxes Consolidation Act 1997. Benefits paid under the Fund must be within the limits specified by the Revenue Commissioners from time to time. The Fund has been registered with the Pensions Board (PB No. 1838).
Money to meet the cost of the Fund benefits is held in a single fund under the control of the Trustee and is invested on the advice of specialist advisers.
Can the Fund be changed or discontinued?
The Trust Deed and Rules of the Fund contain powers of amendment. The Fund may therefore be changed from time to time, subject to any relevant legislation.
The Company reserves the right to discontinue the Fund at any time. However, if this were to happen, you would receive advance notice.
How are pensions paid?
Pensions are normally paid monthly by credit transfer to your Bank or Building Society account.
Will my pensions be taxed?
Pensions, including spouse’s pensions and children’s pensions, are liable to tax under the PAYE system. Tax payable on State pension or benefit will also be deducted from your Fund pension, since the tax authorities take your income from the State into account when calculating tax-free allowances.
Cash lump sums paid on death are not liable to Income Tax but may be liable to Capital Acquisition Tax. As mentioned earlier, a cash lump sum arising on commutation of pension is currently tax-free up to €200,000., with higher amounts being subject to tax.
Assignment of benefits
The benefits provided under the Fund are strictly personal to you and your dependants and may not be used as security for borrowings or assigned in any other way.
Judicial separation and divorce and Pension Adjustment Orders
In the event of judicial separation or divorce, a Court Application may be made for a Pension Adjustment Order relating to retirement or contingent benefits in respect of a married member. Further information about the operation and impact of Pension Adjustment Orders may be obtained from the Pensions Board.
What happens if I have a dispute?
If you have a complaint or dispute relating to your Fund membership, you should first contact the Financial Services Manager - Pensions Administration in Edinburgh. If the Financial Services Manager - Pensions Administration is unable to resolve the issue to your satisfaction, you may then use the Fund’s Internal Dispute Resolution (IDR) procedure, details of which may be obtained from the Diageo Pensions Team in Edinburgh.
You will be required to provide information relating to your complaint or dispute. The determination under the IDR procedure will be made within three months of the date of receipt of your application (or, if later, the date of receipt of any additional information requested from you).
The determination will be issued to you in writing. If you are unhappy with the outcome of the Fund’s IDR procedure, you may then wish to refer the matter to the Pensions Ombudsman who may be contacted at 36 Upper Mount Street, Dublin 2.