Teacher: notional purchase (periodic & lumpsum) & early retirement & AVCs

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mjb

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I am purchasing 2 years app. notional seervice by periodic deduction to leave me with 40 years service at 60. If i retire at 55 I will not have purchased the full two years. Can I purchase the balance by lumps sum at 55 and can i pay for this using avc funds? Be grateful for any advice.
 
Re: teacher and pension advice

Hi mjb,

Ive restated your question somewhat to reflect the question more accuratley. Let me know if this is ok.
aj
 
Re: teacher and pension advice

Don't think so. Notional service is only sold on the basis of retirement at 65 or (for pre-2004(?) starters) 60. You will suffer a reduction in your purchase because of not going to 60. You can, however, seperately make AVCs. Notional service is less obviously a good deal if you don't serve until the relevant age.
 
Re: teacher: notional purchase ( periodic and lumpsum) & early retirement & avc's

Can't retire at 55 on a full pension anyway, revenue maximum early retirement pensions are always lower than their normal retirement equivalents...you may have scope to fund for a larger spouse's pension or a longer guarantee period - did you contact the pensions administration department?
 
Re: teacher: notional purchase ( periodic and lumpsum) & early retirement & avc's

South,

teachers can retire at 55, subject to having 35 years service. By this I mean teachers who started pre-2004.

Now, I know it would be impossible to have 40 years paid superannuation at age 55 (or 56-59).

But, could you not retire between 55-59, with your 35-year pension plus use your AVC fund to enhance the pension?
 
Re: teacher: notional purchase ( periodic and lumpsum) & early retirement & avc's

Left teaching last Sept.early retirement under strands.I had been contributing to notional service for 10 years by periodic contribution.I had another 10 years to go so that I had 40 years by age 60.0.5 years was only added to my pension service.I was hoping to buy back 2 years. A slightly greater amount [> o.5] was added to my lump sum . I was told that I could not top up my contributions with a lump sum contribution.
Did not look into avc contibutions from Cornmarket
 
Re: teacher: notional purchase ( periodic and lumpsum) & early retirement & avc's

Protocol said:
South,

teachers can retire at 55, subject to having 35 years service. By this I mean teachers who started pre-2004.

Now, I know it would be impossible to have 40 years paid superannuation at age 55 (or 56-59).

But, could you not retire between 55-59, with your 35-year pension plus use your AVC fund to enhance the pension?
Click to expand...

In accordance with Revenue Pensions Manual it is not possible to early retire with a normal retirement maximum pension.
 
Re: teacher: notional purchase ( periodic and lumpsum) & early retirement & avc's

So, it is possible to go at 60 with, say, 38 years worth pension plus AVC fund.

But, it's not possible to retire at 56 with, say, 35 years worth pension plus AVc fund?
 
Re: teacher: notional purchase ( periodic and lumpsum) & early retirement & avc's

Protocol - as long as the person is in line with Revenue Maximum Benefits anything is possible!

It is not possible to take the Revenue Maximum Normal Retirement Benefit at an early retirement age.
 
Thanks for all your replies. I intend to retire at 55 with 33 years service plus some notional service which I have been buying plus my avc funds. I am told by the avc provider [marsh] that i will be able to top up my lump some to the revenue maximum and put the balance in an ARF which i can drawdown as i please subject of course to income tax at whatever rate i am on. I am considering uping my avc contributions for the next 4 years to build up my avc fund. Is this wise? I currently have €44,000 in the fund. I'd appreciate any advice.
 
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