Joining Civil Service & Buying back years

boots1

Registered User
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Not sure if I have the right location for this post....

I've read other similiar threads but they haven't really answered my queries......

So I'm starting with the CS next month..... I've heard that u can buy back pension years

For the first year, i will be "unestablished" so am wondering the following:

- when do I start contributing to the pension scheme, do I have to wait a year until I'm "established"?

- How soon can I start buying back years - I have my SSIA at the mo, and cud hold this to fund my CS pension

- How is the buyback of years calculated, say if I'm on for ease of calculation €50K, my annual 5% contribution if €2,500.

If I'm 30, say I'll be buying back 10 years - does that mean it will cost me €2,500 * 10 = 25,000 (before tax) - am i being too simplistic?

Also, how many years can I buy back.....

Apologies for all the questions, just like to have the heads up before I start....
 
As far as I'm aware, you can only buy back years that you have actually worked in the public sector where you did not pay into superannuation. If this is your first public sector job, then you cannot buy back any years as such.

What you can do though is set up an AVC (additional voluntary contributions) which will accumulate a fund, this fund would then be used to make up any shortfalls in your pension and lumpsum on retirement.

Another option you could look into is the purchase of notional service, but would probably mean you would have to work to 65 to be able to avail of the full benefits.
 
Hi Boots,

Have a look at the stickies at the top of this forum especially this one on civil service pensions and the FAQ for established CS's here.

It is always worth while speaking to the trade unions who often very help full in this regard.

I know there are circumstances where civil servants have bought back what's called "notional service" i.e. they have bought service for periods the havent worked in the civil service.

Be carefull when buying back service if you are young and likely to have clocked up 40 years at normal retiring age.

7.What is reckonable service?
Reckonable service is paid service and provided an officer has 2 years qualifying service, the following service is reckonable for pension purposes:

·Full-time paid, established service;
·Job-sharing or work-sharing service (see question 10);
·Non-established service given before appointment to an established post;
·Certain part-time service (on a pro rata basis);
·Additional service or added years granted in certain circumstances (question 31);
·Transferred service (question 32);
·Purchased service (question 33).

For established Civil Servants in paid employment service on or after 20th December 2001, part-time service prior to that date may reckon as follows:
  • for service given prior to 1st June 1973, where the hours worked were at least 18 hours per week, the service will reckon on the basis of one half of comparable full-time service;
  • for part-time service on or after 1st June 1973, where the hours worked were at least 8 hours per week, the service will reckon in the proportion which the hours worked bear to comparable full-time service.
The reckoning of earlier service may involve the payment of appropriate 'back' contributions and other conditions - see Circular 20/2005 paragraph 39. Periods of leave without pay are not reckonable but a break in service, e.g. a career break, does not affect the aggregation of reckonable service i.e. reckonable service before the break may be aggregated with reckonable service after the break.
Periods on pension rate of pay are not reckonable either.
Service given on a commission-paid or fee-paid basis is generally not reckonable.

31.What are added years?
Notional service or added years may be awarded in certain exceptional cases:-

i.On ill-health retirement;
ii.Where the essential competition requirements (e.g. qualifications, experience, age requirements) are such as to preclude appointment by age 25;
iii.On recruitment to certain designated grades.

The award of added years at (ii) and (iii) can only be confirmed at retirement. The amount of the award at (ii) and (iii) may be affected by an individual's circumstances such as retained benefits e.g. prior service, prior occupational pension, State Pension Benefits or age on leaving service.


33.What is the Purchase Scheme?
Officers who would have less than maximum pensionable service at maximum retiring age (normally 65) and who fulfil certain other conditions to purchase additional reckonable service at full actuarial cost. The additional service purchased is treated as actual service in calculating pension and lump sum entitlements, including spouses’ and children’s benefits.

Payment may be made by a lump sum payment or by periodic deductions from pay. Generally, purchase by lump sum must be made within 2 years of appointment or within 2 years of retirement. Periodic contributions begin on the person’s birthday at any age up to 2 years before retirement age (65 in the new scheme and 60 in the old scheme, as appropriate). Purchase rates depend on age at commencement of purchase. Contributions are normally allowable against income tax in the same way as contributions to the spouses’ and children’s scheme, subject to the rules, including limits, set by the Revenue Commissioners.

If you opt to purchase service by periodic contributions, please note that if you leave before the maximum retirement age of 65 or cease to make the periodic payments the amount of added years you will have purchased at retirement will be less than the amount you contracted to purchase initially.

34.What are AVC’s

Additional Voluntary Contribution (AVC) schemes are a facility available to civil servants through their staff associations which allow them to enhance their superannuation benefits at their own expense, as permitted by the Revenue Commissioners. They are essentially a private arrangement between the individual and a private sector pension provider. The benefit is generally in the form of an additional cash amount of pension or lump sum rather than the additional notional years of service under the purchase scheme. The cash benefit is ultimately dependent on the performance of the fund in which the AVC contributions are invested. Contributions are allowable against income tax, subject to Revenue rules.

39. Where can I get more information?
Your Personnel Unit can supply further information on all aspects of the superannuation benefits including information on PAOs outlined in this website.
 
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