Public Service Pension AVC'S top up

Discussion in 'Pensions' started by Daddy Ireland, Mar 9, 2017.

  1. Daddy Ireland

    Daddy Ireland Registered User

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    My wife recently took up employment in the Public Service and is contributing towards a pension under the Single Public Service Pension Scheme (SPSPS).

    From what I gather, she can contribute AVC's on a stand alone basis I think through Cornmarket or Insurance companies and not directly as part of the SPSPS . Would there be any other options open to her whereby she can maximise the contribution for her age being 35% as aged 55 next birthday ? Would she be eligible to take out a PRSA perhaps ? What would be best advice on how to proceed?

    Thanks.
     
  2. Daddy Ireland

    Daddy Ireland Registered User

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    Sorry I should have added that my wife would intend retiring at 60 so the contributions would be for approx 5 years x 18k per annum so very short term but worth it for the tax relief and taking of the 25% tax free at age 60.
     
  3. Protocol

    Protocol Frequent Poster

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    She does not have to use Cornmarket broker.

    She can buy an AVC-PRSA herself.
     
  4. Gordon Gekko

    Gordon Gekko Frequent Poster

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    But cannot get tax relief through payroll via anything other than a Cornmarket product, correct?
     
  5. Daddy Ireland

    Daddy Ireland Registered User

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    I think if my wife takes out a Public Sector PRSA and has less than 9 years service then she cannot avail of the 25% tax free lump sum. As service will be 5 or 6 years max then that rules that option out as getting the 25% is very important. So maybe the AVC's route might be best.
     
  6. Protocol

    Protocol Frequent Poster

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    Gordon,

    yes, correct.
     
  7. GSheehy

    GSheehy Frequent Poster

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    When the policy is issued you will receive a PRSA Certificate. You send this into your local revenue office so they will amend your certificate of tax credits and send the revised one to the employer. You then get your tax relief as part of your salary every month.

    If you increase your contribution a revised PRSA Certificate will be issued and you then send the new one to revenue.

    The sellers of these products make this out to be a big negative. I suppose, if you've Cornered the Market, that suits. I've even had emails from Public Servants stating that they have been told that they are not eligible to do a PRSA AVC outside of the scheme.

    A stamp and a short cover letter to save yourself up to 5% of every contribution? How bad.
     
  8. Daddy Ireland

    Daddy Ireland Registered User

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    Thanks for all the replies.

    Just referring to my post no 5 above am I correct in stating that if retiring at age 60 from the Public Service my wife cannot avail of the 25% tax free if taking out a Public Sector PRSA now as she must have 9 years service to avail of the 25% ?

    So she can just go ahead outside of the Public Service and separately take out a AVC PRSA and if doing this she can draw down 25% at age 60 having paid in 5 single contributions x 18k p.a

    If I am correct therefore there is a big drawback in taking out a Public Service PRSA in accessing the 25%.