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info@eastcorkjournal.ie


East Cork Business Post Is An Annuity A Good Investment?


Firstly, what exactly is an Annuity? An annuity is a financial


by GERARD O’BRIEN At Heritage Wealth, we


appreciate that deciding


what to do with your pen- sion fund is one of the most important financial deci- sions you will have to make. There are various options available


is a good time to seek pro- fessional advice, to ensure that whatever decisions you make are best suited to sup- port you financially in the many years of retirement ahead. One of these retirement options may involve purchase


the of an annuity.


This article explains in clear terms what an annuity is and how it works for many pensioners.


to you and now


product sold by insurers that pays out an income to an individual for the rest of their lives. An annuity is the only product that ensures a secured income for life. For this reason, annuities will especially appeal to individ- uals who want a solid, safe form of investment, free from risk, that will provide certainty of income in re- tirement. Most people will general- ly only come across annui- ties at retirement age. Most retirement


plans operate


by accumulating a fund of money on behalf of an in- dividual over the period of their working life. By the time the person reaches re- tirement the pension fund will have achieved a certain value. This value (also, re- ferred to as the ‘capital sum’) depends very much on the level of contributions that have been paid into the


retirement plan over the in- dividual’s years of service. The


higher the level of


contribution, the larger the fund, although other fac- tors like investment returns will also have a bearing on values.


Are Annuities a reliable financial product? Unlike some investment


products, annuities are not invested in stocks and shares and therefore they not sub- ject to the same type of volatile market fluctuations that


these assets are ex-


posed to. The attraction of annuities is that they offer consistency of income over the lifetime of the person. Market volatility may come and go but an income from an annuity is paid regardless of investment conditions.


How do I know what rate of income I will receive? When a person reaches


retirement, they will have accumulated a fund of mon- ey. Let’s suppose the fund of money equals €200,000 and out of that amount the person takes a tax free lump sum of €50,000 (this is subject to certain qual- ifying conditions). They then can use the balance to purchase an annuity. The insurance company accepts the €150,000, agrees the yield / price based on an- nuity rates (say, 3%) at that time, and the insurer will then provide an income of €4,500 (150,000 x 3%) for life to that person (the ‘an- nuitant’) for as long as they live. If the annuitant passes away after 6 years for exam- ple, and assuming it was a single life annuity, the funds stay with the life company and the annuitant’s bene- ficiaries do not receive any funds from the life company. However the pensioner (annuitant) may also con- sider purchasing a joint life annuity, whereby 50% of


Legal Matters Workplace Relations


2015 and replaces a number of existing bodies.


Before


by STEPHEN COPPINGER


The establishment of The


Workplace Relations Com- mission (WRC) in 2015 is one of the biggest developments in workers’ rights of the past thirty years.


the Commission was estab- lished, claims in respect of employees’ rights could have been potentially brought before a number of bodies including the Labour Rela- tions Commission and the Equality Tribunal.


As this Stephen Cop-


pinger Solicitor, with Walsh & Partners, Solicitors, pro- vides some advice to employ- ees who wish to exercise their rights under the new system. The Workplace Relations Commission was established on the 1st


and is an independent Stat- utory Body.


sion was established by The Workplace Relations Act,


led to a complicated and an overworked system where long delays were common, the Commission was estab- lished to deal with all these complaints and expedite the claims process.


Common complaints that


of October, 2015, The Commis-


are brought to The Work- place Relations Commission are unfair dismissal and em- ployment and equality com- plaints. The provides


Commission advisory, concilia-


tion and mediation services with a view to parties trying to resolve any issues without


resorting to formal Adjudica- tion proceedings.


Bringing a complaint is


a lot more straightforward than it was under the previ- ous regime. Employees who want to make a compliant or refer a dispute can do so by filling out an Application which is available on the Commissions website www. workplacerelations.ie. Before bringing a complaint it is advisable that the em- ployee notifies their employer to ascertain whether the mat- ter can be resolved through mediation or other means. Whilst an employee can


fill out the Application Form without legal representation, it is recommended to obtain legal advice as employment legislation is complicated and there is a substantial body of employment legislation which has built up over the


four decades. It is advisable to give as much detail as pos- sible when lodging the ap- plication form in respect of the nature of the complaint. The application form give a number of options to assist with what complaints can be made.


All complaints made


to the Commission must be made within six months of the complaint but if you can show reasonable cause for a delay, an extension up to 12 months will be granted in certain exceptional circum- stances. Normally the procedure


under the Commission is that


legal arguments and


evidence should be sent to them within 21 days from the complaint being made. Ev- idence would include state- ments


from witnesses and


any documents the employer and employee wishes to rely


Tel: 021 463 8000 • Email: info@eastcorkjournal.ie • Web: www.eastcorkjournal.ie


upon such as the contract of employment and personnel documents. A key issue in employment cases often is as to whether fair procedures have been followed by the employer in dealing with the employee’s complaint or in dismissing an employee. The policies which the employer has in place such as griev- ance, bullying and harass- ment are key in ascertaining whether fair procedures were in place and these are factors which will be considered at a hearing. Accordingly, it is im- portant to keep records, cor- respondence and documents throughout the procedure.


complaint An oral hearing will then


take place before an Adju- dication Officer where ev- idence is heard. They will then make a decision which they have 28 days to do.


If


a finding is made against an employer, they are then re- quired to enforce the Order.


If either party is not satisfied with the decision they are en- titled to make an Appeal to the Labour Court in respect of the decision. The Commission carries


out other function such as the appointment of Inspec- tors. Inspectors are


now


appointed by the Commis- sion to visit the places of the employment and carry out investigations to ensure compliance


with equality


and employment related leg- islation. If an Inspector is of the view that there has been a breach of employment legislation, they may issue a Compliance or Fixed Pay- ment Notice to the employer. Since the establishment of


The Commission in 2015, it is now a lot more straightfor- ward to bring a claim against your employer. Where pre- viously there was a number of bodies dealing with the various facets of employ- ment law,


it now all dealt eastcorkjournal


with within The Workplace Relations Commission. The process is now a lot more streamlined and ultimately it is easier for an employee to now bring a complaint against his employer to The Workplace Relations Com- mission. Stephen Coppinger is a


solicitor practicing in Walsh & Partners, Solicitors and Commissioners for Oaths, 17, South Mall, Cork. Telephone: 021-4270200 Email: info@walshand-


partners.ie Web: www.walshandpar-


tners.ie Disclaimer: While every


care is taken to ensure ac- curacy of information con- tained in this article, solicitor Karen Walsh does not accept responsibility for errors or omissions howsoever arising, and you should seek legal ad- vice in relation to your par- ticular circumstances at the earliest possible time.


@eastcorkjournal / #eastcorkjournal


the annuity continues to the second life (for example, a spouse) for their lifetime and ceases on their death. It is important to note that the annuity rate (annual yield, 3% in the previous exam- ple) reduces when you add in a 50% spouses pension (joint life annuity), and may decrease even further if you add a further benefit like es- calation, whereby the yield / payment grows each year to counteract the negative effects of inflation.


What type of Annuity can you purchase? - Single / Joint Life An-


nuity - An annuity can be purchased on a single


life


basis i.e. ceasing on the death of the individual, or on a joint life basis where some or all the annuity can continue to a second life (usually the spouse/civil partner), assuming they live longer than the main annu- itant;


Thursday, 18th


May 2017


- Enhanced Annuity -


An enhanced annuity is a product where the income provided is based on your health circumstances. The company providing your annuity assess your health through a lifestyle and med- ical questionnaire complet- ed as part of the annuity quotation process. If you qualify for an enhanced annuity, the income provid- ed will be higher than that provided under a standard annuity; - Standard Annuity – A


standard annuity product does not take account of your health circumstances in setting the income level. The standard annuity will be an option if you do not qualify for an enhanced an- nuity.


In summary, upon re-


tirement it is vital that you weigh up and the pros and cons of each option avail- able to you. The current flexible pension environ- ment has given people more choice in how they spend their retirement


savings, and active investing in the


global stock markets will make sense for many peo- ple. However, not everyone will want to experience the volatility associated with the stock markets. We maintain that you should always take professional financial advice on how to make the most of your retirement savings. Gerard O’Brien LL.B


LL.M CFP® QFA is a Certified Financial Planner and the Owner of Heritage Wealth Management, a Fi- nancial Planning practice based at 27 Cook Street, Cork. For more informa- tion, contact Gerard at gerard@heritagewealth. ie www.heritagewealth.ie Disclaimer: All data


and information provided within this article is for in- formational purposes only. Heritage Wealth Manage- ment Limited makes no rep- resentations as to accuracy, completeness, suitability, or validity of any information and will not be liable for any errors, omissions or delays in this information or any losses, injuries, or damages arising from its use.


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