After discussing the pension bracket further with Ceridian, it seems that the MISC Deduction will remain until ICs are paid out (depending on the amount of the bonus). As of now, Darragh’s tax relief is 20% of the cumulative gross earnings for this year, if he contributes more than the tax relief threshold the pension will be taxed. Attached is Ceridian’s calculations for February and December 2015. In December there was no MISC Deduction since Darragh’s cumulative gross earnings was higher. Let me know if you agree with the attached or have any questions.
