buying back years in public service

[tess]

Hi,
I know this question has been addressed but my situation is a little different.
I worked from 1985 up until 1993 and then went abroad to return back to the public service 2009. The superannuation office calculated my years of service above to amount to over 18,000 euros as i was employed on a temporary service before I went away.
My question is should I just pay this amount in one lump sum and hopefully will get some back from revenue (?41 %) or should I just pay a small amount off each year until I retire? Does the amount I owe actually increase over time with interest added on too?
Secondly If I decided to leave my job even though I am back in it almost 4 years now would I be wasting my money by buying back the years anyway as I am currently paying into a pension so should be entitled to something when I reach retirement age even if I do leave prematurely? (I was debating going abroad again).
I am very confused about the best way to to pay this lump sum and if I should pay it especially if I am contemplating leaving again.
I would appreciate any advice.
Kind regards.

 

[Complainer]

Hi,
I know this question has been addressed but my situation is a little different.
I worked from 1985 up until 1993 and then went abroad to return back to the public service 2009. The superannuation office calculated my years of service above to amount to over 18,000 euros as i was employed on a temporary service before I went away.
My question is should I just pay this amount in one lump sum and hopefully will get some back from revenue (?41 %) or should I just pay a small amount off each year until I retire?

I'm not clear what you're getting for the €18k. Is this to buy back pension coverage for the 16 years between 1993 and 2009? It seems a fairly low amount, but it would depend on your salary and grade.

You should consider the risk of the tax rules changing. You might get full 41% relief now, but who knows what relief you would get if you spread the purchase out over the years to retirement.

On a broader issue, you should also consider if this is the best return for your money. If you were to put €18k into an AVC via a broker, what would your projected return be? You should also consider the risk of the Govt defaulting - will they be around to pay the benefits to you?

Does the amount I owe actually increase over time with interest added on too?

Not sure - check with your Superannuation folk.

Secondly If I decided to leave my job even though I am back in it almost 4 years now would I be wasting my money by buying back the years anyway as I am currently paying into a pension so should be entitled to something when I reach retirement age even if I do leave prematurely? (I was debating going abroad again).

If you pay the lump sum now, you've bought that pension benefit, regardless of whether you leave soon. If you choose to pay over a number of years, then you'll be buying a bit of that benefit each year.

The benefit that you're buying will be in addition to the pension entitlement that you earn from your normal employment.