Pre 95 public sector employee with more than 40 years service and planning to retire.
General advice is that lump sum will be 1.5 times final salary (3/80th x salary x 40 yrs) and pension is 1/80th x salary x 40 years.
No benefit accruing from any extra years worked?
Came across this while looking for pension related info but not sure what this means:
"If you have over 40 years service worked, then you can fund for an additional tax-free lump sum using an AVC. You are entitled to take out 3/80ths of your pensionable salary tax-free from your AVC for every year that you work over the 40 years"
Chapter 8 of Revenue's pension manual - "If total service exceeds 40 years, each year of service up to a maximum of five years may earn a further 60th of final remuneration" (section 8.2)
and section 8.5 reads "If total service exceeds 40 years, the lump sum element of the aggregate benefits may be increased by 3/80ths of final remuneration at the date of retirement per each additional year of service, up to a maximum of five years."
Also this :
"Public sector employee with 43 years at age 65 has scope to fund for additional tax free cash. (Salary of €100,000).
BEFORE RETIREMENT
Actual gratuity €150,000
From superannuation scheme
(40/80th x 3 x €100,000)
Revenue Limits
(43/80th x 3 x €100,000) €161,250
Scope for last minute AVC: € 11,250 "
Can then claim tax relief on the amount paid into the AVC
Is is possible to increase the lump sum by investing in a last minute AVC and what if any are the tax implications?
Any insight appreciated
General advice is that lump sum will be 1.5 times final salary (3/80th x salary x 40 yrs) and pension is 1/80th x salary x 40 years.
No benefit accruing from any extra years worked?
Came across this while looking for pension related info but not sure what this means:
"If you have over 40 years service worked, then you can fund for an additional tax-free lump sum using an AVC. You are entitled to take out 3/80ths of your pensionable salary tax-free from your AVC for every year that you work over the 40 years"
Chapter 8 of Revenue's pension manual - "If total service exceeds 40 years, each year of service up to a maximum of five years may earn a further 60th of final remuneration" (section 8.2)
and section 8.5 reads "If total service exceeds 40 years, the lump sum element of the aggregate benefits may be increased by 3/80ths of final remuneration at the date of retirement per each additional year of service, up to a maximum of five years."
Also this :
"Public sector employee with 43 years at age 65 has scope to fund for additional tax free cash. (Salary of €100,000).
BEFORE RETIREMENT
Actual gratuity €150,000
From superannuation scheme
(40/80th x 3 x €100,000)
Revenue Limits
(43/80th x 3 x €100,000) €161,250
Scope for last minute AVC: € 11,250 "
Can then claim tax relief on the amount paid into the AVC
Is is possible to increase the lump sum by investing in a last minute AVC and what if any are the tax implications?
Any insight appreciated