There are a number of points to consider:
- Under Revenue rules, the max benefits you can get from an Occupational Pension (including any AVCs) is limited to
# a pension of 50% of final Salary , plus
# a lump sum of 150% of final Salary
- you are suggesting that that is what the Garda Scheme will provide. If strictly so, then you have no scope for AVCs.
However:
- the Revenue limits are based on Final Salary, which can include any non-pensionable income such as Allowances, overtime etc.
- so whilst your Occupational Pension benefits may be based on basic salary (is that correct?), you can invest AVCs to provide benefits based on other non-pensionable earnings
- clearly the most tax effective strategy would be to build up an AVC pot to equal 150% of any non-pensionable earnings, since you could take such as an additional tax free lump sum (based on current rules).
- any AVC fund in excess of the additional 150% would have to be used to generate a retirement income, and obviously such additional income might be taxable (depending on your overall income and tax thresholds at the time).
So if you expect to retire on “full benefits “ from the Garda Scheme and won’t have any non-pensionable income, then strictly speaking you cannot invest AVCs. But assuming you will have have some non-pensionable income, then that will allow scope for investing AVCs.
Perhaps you need to talk to whoever manages your AVC facility.