I have been a public sector employee since December 2006. I was 24 when I joined. I just pay the standard normal pension deductions. Should I be increasing it to allow me the option of retiring before I am 64 or can I not? How do I do it if I can. What would I receiev after 40 years service?
I don't understand my pension
- Thread starter sandrat
- Start date
What part of the public sector are you in? Is it the civil service, the broader public service or perhaphs you are employed in the commercial semi state sector (ESB, Bord Gas etc)? Depending on what part of the public sector you are in your pensions could range from a private sector DC style pension to a rolls royce DB scheme enjoyed by Judges and University Professors.
edit: I see from your profile that you are a librarian. Are you employed by the local authority or perhaps you are a librarian in a University or IT?
edit: I see from your profile that you are a librarian. Are you employed by the local authority or perhaps you are a librarian in a University or IT?
Local Authority staff can pay AVCs (additional voluntary contributions) to make up for years that they might be short of or to plan for earlier retirement. Your Superannuation / Payroll section should have details of who your contact person/company is.
I'm not aware of being able to add to the LA Superannuation scheme directly (other than buying back temporary service), though I'm open to correction here.
Your pension section should send you information each year on your approximate entitlements at pension age based on salary and years of service - I received mine from Superannuation section in HSE a couple of weeks ago.
I'm not aware of being able to add to the LA Superannuation scheme directly (other than buying back temporary service), though I'm open to correction here.
Your pension section should send you information each year on your approximate entitlements at pension age based on salary and years of service - I received mine from Superannuation section in HSE a couple of weeks ago.
Kildare123
Registered User
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Sandrat, I have a sneeky suspicion your earliest retirement age is 65? The rules changed in 2004?? Check it out with your pensions section
No, your employer (County Council/City Council) is who you should contact - best place to start is probably payroll section.
I thought they changed it so you can work beyond 65 but not that you had to work til 65?
Kildare123 is spot on: see www.citizensinformation.ie/categories/employment/retirement/older-people-and-working/retirement-age-in-ireland
By joining at 24 you will have 41 years service at 65. Maximum allowable service is 40 years for pension purposes. You could take out an AVC PRSA or an AVC scheme via your payroll to enhance your pension. Best to take professional pension advice.
By joining at 24 you will have 41 years service at 65. Maximum allowable service is 40 years for pension purposes. You could take out an AVC PRSA or an AVC scheme via your payroll to enhance your pension. Best to take professional pension advice.
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You can technically retire whenever you want but your pension will be reduced (by a lot) for each year you retire before 65/40 years of full service.
Money put into AVCs can be drawn down when you retire... some as a lump sum and some to be put into an ARF (approved retirement fund) the idea being that this money will make up the shortfall in your pension from your employer if you don't have full service or wish to retire before 65.
As Slim says best to take professional advice....
Money put into AVCs can be drawn down when you retire... some as a lump sum and some to be put into an ARF (approved retirement fund) the idea being that this money will make up the shortfall in your pension from your employer if you don't have full service or wish to retire before 65.
As Slim says best to take professional advice....
Dn't know details about your scheme but public servants hired since 2004 generally can't retire on pension before 65 without actuarial reduction being made to the size of their lump sums and, particularly, pensions (this scheme is known as "cost neutral early retirement").
AVCs are a way of covering that reduction.
But AVCs aren't exactly flavour of the month (which of itself doesn't mean they're a bad idea).
An alternative - and one that has not been discussed much on this site - is to retire (or, more correctly in this instance, stop working) early but not draw down your pension entitlements until normal retirement age, in order to avoid the reductions mentioned above. Funding those years is challenging. However, if you pay off your mortgage and other borrowings a number of years before retirement you could generate a savings pot which could get you out of work a couple of years before normal retirement age and leave you with a full preserved benefit at normal retirement age. This has drawbacks - the principal one being tax inefficiency - but public servants close to retirement tend to really value their pension entitlements and (I would guess) are likely to be wary of cost-neutral early retirement.
guitarchris
Registered User
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Hi, I work in pensions section. Anyone thinking of adding to pensions should consider notional service. Avcs are with private companies and you can choose level of risk but some may invest in property, or shares etc. Notional service is agreeing with your public sector employee to buy back years. You start paying periodic deductions at your next birthday until you retire. Any pensions section would give you a quote on how many years you need to buy based on your potential service and the cost they will also give you an estimate of what your based will be based on with the added years (so you can see if it's worthwhile).
guitarchris
Registered User
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- 13
Hi, you should also be able to opt for "notional service" this is buying back years of service. Your pension section would give you a quote for a year but you can buy more.
Ask them to look at your potential service and give you an estimate of your pension and service. If employed before 2004 you could retire at 60 or 65. normally with a pension under the LGss you'd get a lump sum at retirement and also an annual pension. Both use your years of service and salary at retirement (basic plus any additional allowances etc) to work these figures out.
The deal with notional service is that you can pay a lump sum to buy back (expensive) or start deductions from your next birthday to retirement.
Ask them to look at your potential service and give you an estimate of your pension and service. If employed before 2004 you could retire at 60 or 65. normally with a pension under the LGss you'd get a lump sum at retirement and also an annual pension. Both use your years of service and salary at retirement (basic plus any additional allowances etc) to work these figures out.
The deal with notional service is that you can pay a lump sum to buy back (expensive) or start deductions from your next birthday to retirement.