NUI GALWAY PRSA NUI Galway Group PRSA Scheme

NUI GALWAY PRSA NUI Galway Group PRSA Scheme Personal Retirement Savings Account -suitable for non-pensionable employees Noel Hackett QFA New Ireland Assurance Atlanta House 36 Dominick Street Galway Tel 086 -8186163 - 091 563023 Email; noel. hackett@newireland. ie 1 3 rd March 2015

Index § § § § Background Pensions Update Eligibility & Contributions Charges Tax Benefits Retirement Benefits Fund Choice and performance Communication 2

PRSA Scheme –Who’s Who § Employer – NUI Galway § Suitability – Non pensionable Employees of NUI Galway § Administrators – New Ireland § Investment Managers • State Street Global Advisors (SSGA) • Kleinworth Benson Investment Managers (KBI) 3

Legal Aspects § Individual PRSA contracts § Assets personally owned by member § New Ireland approved PRSA provider § Registered with the Pensions Board no. APP/H/316/F 4

Pensions Update Pensions Levy: § § 2011 -2014 Temporary Pensions levy finished 0. 15% for 2015, what then? Applicable to private pension funds in operation for Irish residents. The amount of levy paid in any year will be determined based on the market value of the assets on 30 th June each year. AMRF / ARF Withdrawal: § § § Changes with effect from January 2015 AMRF – one optional withdrawal each year to max 4% of fund value ARF – compulsory 4% withdrawal from fund over the year – doesn’t have to be in one withdrawal. 5

Pensions Update § Maximum salary for pension funding is now € 115, 000 – tax relief still available at marginal rate. § Overall personal lifetime lump sum available tax free is € 200, 000, next € 300, 00 at 20% and anything above this at 40% (>€ 500, 000) § Tax relief currently at marginal rate § Standard Fund Threshold € 2 million with effect from 1 st January 2014, unchanged for 2015 6

Pensions Update State Pension: § Transition Pension from 65 abolished § Contributory Pension from 66 • € 11, 976 per annum ( single ) § Retirement age has been extended to: • 66 from 2014 • 67 from 2021 • 68 from 2028 7

Eligibility § Employees are given immediate access to the PRSA on joining NUI Galway § Scheme is voluntary. Employee only contributions § New Ireland notified of new entrants to arrange a 1: 1 meeting with them 8

PRSA Scheme § Company Normal Retirement Date 65 § Retirement for PRSA is any age between 60 -75 years § Early retirement may be taken from age 50 if retiring from your employment 9

Charges § 5% Contribution Charge § 1% Annual Fund Management Charge 10

Tax Benefits § Tax Savings on contributions § Tax Free Investment § Tax Free Lump Sum at Retirement 11

Tax Relief On Pension Contributions Salary € 48, 000 Employee Contribution € 200 p. m. (5% of Salary) 20% tax 40% tax Employee Monthly Contribution before Tax 200. 00 Less Tax Relief on Employee Contribution 40. 00 - 80. 00 Net monthly cost to Employee 160. 00 120. 00 Total Contribution Invested 200. 00 12

PRSA Contributions Age Limits Max PRSA Contributions* Under 30 15% 30 to 39 20% 40 to 49 25% 50 to 54 30% 55 to 59 35% 60 + 40% *Percentage of your pay that you can contribute to your PRSA and obtain tax relief 13

What happens if You Leave § You can take your Investment with you (Please ask your advisor before you decide to ensure it is in your best interest) 14

What do I get at Retirement? § 25% of fund tax free § Balance as* - ARF / AMRF - Open Market Option - Annuity ( via ARF ) - Open Market Option - Taxable Cash *Balance of retirement fund can invest in an ARF if guaranteed income of € 12, 700 or € 63, 500 invested in an AMRF 15

Investment Choice Investment Ezine: 16 available funds for Investment § Standard PRSA Investment Ezine 16

Investment Choice Lifestyle Option § Individual Retirement Investment Service (IRIS) § Passive IRIS § Indexed Euro-zone Long Bond Fund Low Risk Funds § Pension Cash Fund Medium Risk Funds § Pension Gilt Fund § Pension Income and Growth Fund 17

Investment Choice cont. . Medium to High Risk Pension Funds § § § Pension Evergreen Fund Pension Managed Fund Pension Consensus Fund Pension Ethical Managed Fund KBI Pension Managed Fund High Risk Funds § Pension Equity Fund § Pension International Equity Fund § Indexed all Equity § World Indexed Hedged Fund § World Indexed Unhedged Fund 18

Investment Strategy Lifestyle Approach § The longer the term is to retirement, the higher the proportion invested in equities § As retirement approaches, income is secured by switching into Fixed Income Assets/Cash 19

Active IRIS: Moving to safer assets as you get older Active IRIS Equities 20 Absolute Return Bonds / Cash

IRIS Glide Path – Default Fund 21

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Passive IRIS Glide Path 23

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Communication Every 6 months: § Statement of Account & Investment Report Every year: § Statement of Reasonable Projection Ongoing: § Online Service Available - go to New Ireland’s website http: //www. newireland. ie/ and click on Pensions Online 26

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Summary § State Retirement age increasing § Living longer in retirement § Earlier you start the better § Marginal rate tax relief on Employee contributions § Currently the State old Age Contributory Pension is € 230. 30 per week. 29

Next Steps § Talk to Noel Hackett § Consider paying into a PRSA § Review Investment fund/s • If you don’t select / haven’t selected a fund contributions will be invested in the IRIS Fund 30

Thank you For further information please contact NOEL HACKETT QFA New Ireland Assurance Atlanta House 36 Dominick Street Galway Tel: M 086 -8186163 O 091 -563023 Email: Noel. hackett@newireland. ie 31

Compliance Notice This presentation if of a general nature and should not be relied upon without seeking additional information. Terms and conditions apply. All opinions and estimates constitute best judgement and are subject to change. Warning: The value of your investment may go down as well as up. Warning: The funds may be affected by changes in currency exchange rates. Warning: Past performance is not a reliable guide to future performance. New Ireland Assurance Company plc is regulated by the Central Bank of Ireland is a member of the Bank of Ireland Group. 32