HSE - Defined Benefit Scheme

[Daddy]

My wife left the Health Service some years ago and is now in the private sector.

While in the HSE she paid into a pension there but her time in the HSE was broken i.e in and out of the private sector.

She now has the option to catch up on reckonable service in the HSE by payment of a sum of approx. €10,000

As I said she is now in the private sector and contributing to a pension through her work.

If she takes up the offer to buy back the reckonable service is she entitled to full tax relief
on the 10k payment.

She is aged 46 and currently pays 10% of her salary into her pension scheme.

Thanks for any help you can give.

 

[Dave Vanian]

What's the question?

Suspect this query should be in th Public Sector Pensions forum.

 

[Daddy]

Sorry thought I made it clear enough.


If my wife takes up the offer to buy back her reckonable service at a cost of 10k is she entitled to full tax relief.

 

[Dave Vanian]

If my wife takes up the offer to buy back her reckonable service at a cost of 10k is she entitled to full tax relief.

Sorry - my mistake - while reading rapidly I transposed the words "is" and "she" and read the sentence as a statement.

Unfortunately I don't know the answer as I really only know about private sector pensions.

Moderator - perhaps you could move this to Public Sector Pensions where there are likely to be more experts lurking.

 

[Protocol]

Yes, all pension contributions will give tax relief.

Subject to the age-limits, of course.

 

[Daddy]

Thanks.

 

[Daddy]

So I am told I have to pay the HSE € 10k be December 10th.

My wife per age limits can contribute 25% of net relevant earnings.

Current employer her salary is 70k and she pays 10% in to pension.

Is this right 25% of 70k = allowable pay in for tax relief purposes = 17,500

So 10k pay in in current job + 10k to HSE = 20,000

If my wife then goes ahead is it only on the 17,500 she can claim relief (or in other words 2.5k of what she pays to HSE does not get any relief ). Can this 2.5k be rolled into next year for relief ?

Moderator - I would appreciate if you could move this to the Public Sector Pension Forum.
Sorry.

 

[Don_08]

Its 25% of total taxable earnings, so add in any bonus or benefit in kind to the €70,000. If she is still short, then the extra can be rolled forward to next year.