Current Retirement Plan (Mercer Master Trust)
VMware provides a defined contribution pension plan which is managed in a Master Trust by Mercer Ireland Limited. The plan was introduced on 1st November 2022.
All regular employees of VMware are eligible to join the pension plan.
VMware matches the employee contribution as follows:
(% of base salary)
(% of base salary)
Additional Voluntary Contributions (AVCs)
You may pay AVCs to the Plan, in excess of 6% of Plan Salary and do this via MyLife [VMware network access required].
Income tax relief on pension contributions
Pension contributions (both your regular contributions and AVCs) are eligible for income tax relief at your marginal rate (either 20% or 40%). The Revenue places limits on the amount of salary you can contribute free of income tax as pension contributions each year based on your age: The maximum amount of earnings taken into account for calculating tax relief is €115,000 per year
Employer Contributions vest after two years of qualifying service.
If you leave VMware before retirement
Your benefit options on leaving VMware will depend on whether or not you have two or more years of Qualifying Service, or have been verified as an Outgoing Worker.
· If you have completed less than two years Qualifying Service, you can take a refund of the value of your own contributions (and any transferred in contributions) less tax, or transfer them to a new employer’s pension plan.
· If you have completed more than two years Qualifying Service, you can leave the full value of your retirement account (including any transferred in contributions and any contributions made by VMware on your behalf) in the VMware pension plan, or transfer your retirement account to a new employer’s pension plan.
· Qualifying Service is your time as member of the VMware plan plus any time in a previous plan from which you transferred your benefits into the VMware plan.
· If you are an Outgoing Worker, you will also be entitled to receive a refund of the contributions the Company has made to the Plan on your behalf
o An Outgoing Worker is someone who either:
§ Joined their organization on or after 13 September 2019 and whose previous employment was in another EU Member State and was an active member of a pension scheme relating to that employment. OR
§ Leaves their organization after 13 September 2019 and who’s immediate next employment is in another EU Member State.
Your benefits under the Plan will be dependent upon the accumulated value of your Retirement Savings Account (at the date of payment of the benefit). Your benefits will normally be paid to you from your Normal Pension Date.
Within the limits allowed by Revenue you may, with the agreement of the Trustees, decide the pattern of your benefits to suit your personal circumstances at the time of your retirement. The benefits which may be purchased with your Retirement Savings Account at your retirement include:
· A lump sum
· A pension payable to yourself for life
· A Spouse’s, Civil Partner’s or other Dependent’s pension payable after your death
You may, with the Company’s consent, retire early at any time on grounds of incapacity due to ill-health or injury (as to which the Trustees must be satisfied) or for any other reason after you have attained age 50.
You may join the Retirement and Death and Disability Benefit plans immediately on joining VMware. Your acceptance for Death and Disability Benefits and subsequent salary related increase may be subject to you providing satisfactory medical evidence. You will be advised if you are required to provide such medical evidence.
When Coverage Begins
Coverage will begin once you are eligible and have completed the enrolment process.
When Coverage Ends
· You will be entitled to defer Retirement Benefits if you leave the service of VMware and have completed two (2) year’s statutory Qualifying Service. This means that the vested portion of your Retirement Savings Account will continue to be held under the Plan until your retirement (unless you opt to take a Refund of Member Contributions or apply for a Transfer as outlined below) to provide you with Retirement Benefits.
· If you have not completed two (2) years’ statutory Qualifying Service, you have the option of taking a refund of the value (at the date of payment of the benefit) of any Member Contributions/AVCs paid by you to the Plan. Any refund will be subject to tax and qualifying criteria.
· As an alternative to a Refund of Member Contributions, you may apply for a Transfer within 3 months of Mercer issuing your Leaving Service Benefit Options.
Did You Know?
If you have completed less than 2 years of qualifying service and you do not complete a Benefit Options Form within 3 months of Mercer issuing your Leaving Service Benefit Options, you will receive a refund of the value (at the date of payment) of your Member Contributions/AVCs paid to the Plan.
MyLife [VMware Network Access Required]
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Last Updated: 18 Nov 2022, 2:08 PM