Teachers & Pensions

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Hippykitten

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I am 30 and this is my 5th year primary teaching (permanent). Feel bombarded by all this pension news. Have not got a clue about whole area. I am making the standard contribution (I think!). Would like to retire after 35 years service. What would I be entitled to on retirement? What are the advantages of making an AVC contribution or buying back years service?
A very confused Hippykitten.
 
Ring the Primary superannuation section in the DES and get the name of the person who deals with notional service purchase. Write to that person asking for a quote for "maximum notional service purchase starting on the date of my next birthday, by periodic deduction, based on retirement at age 60". You'll get a quote eventually - they tend to be very slow. You can then talk to Cornmarket about AVCs, if you want, and compare the two quotes. But you won't hear much positive comment on this site about Cornmarket and its (extortionate) fees.
 
Hi Happykitten, if you do the full 40 years your pension will be half your finishing salary(based over the final 3 years)i.e. 40/80ths. so after 35 years you'll get a yearly pension of 35/80ths. there are other posts about charges/bad value the cornmarket/irish life avc scheme is; personally i'm not convinced they are bad value for some contributors. perhaps as you are quite young something else might be more beneficial in your case.
Regards.
 
in addition to that mentioned above, you also get a tax free lump sum on retirement of a maximum of 120/80ths of your final salary, ie 1.5 times your final salary based on 40yrs service. For 35 years service, i imagine it would be 105/80ths, again it's probably possible to top this up.
 
Glenbhoy said:
in addition to that mentioned above, you also get a tax free lump sum on retirement of a maximum of 120/80ths of your final salary, ie 1.5 times your final salary based on 40yrs service. For 35 years service, i imagine it would be 105/80ths, again it's probably possible to top this up (my italics).
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Yes, with the notional service route I outlined above you would be treated on retirement as if you had worked the extra 5 years i.e. you'd be buying a right to 15/80ths of lump sum (tax free) and 5/80ths of pension. And, of course, you'd get full tax relief on the notional service contributions.
 
Primary Teacher & AVC's

Teaching for 6 years (31) and am just making the standard pension contribution (about e160 a month). This seems quite a small amount to me as I would like to retire early. What would it cost me to set up and maintain AVC's? Can I get them from somewhere other than Cornmarket? Are there any other options pension options available to me? Thanks a mil.
 
Re: Primary Teacher & AVC's

Hi HK,

Search this forum and you will get plenty of coments on the subject of teachers superannuation and AVC's.

How did you get on with the advice given here in this post back in october 2005?

Hippykitten said:
I am 30 and this is my 5th year primary teaching (permanent). Feel bombarded by all this pension news. Have not got a clue about whole area. I am making the standard contribution (I think!). Would like to retire after 35 years service. What would I be entitled to on retirement? What are the advantages of making an AVC contribution or buying back years service?
A very confused Hippykitten.
Click to expand...

oysterman said:
Ring the Primary superannuation section in the DES and get the name of the person who deals with notional service purchase. Write to that person asking for a quote for "maximum notional service purchase starting on the date of my next birthday, by periodic deduction, based on retirement at age 60". You'll get a quote eventually - they tend to be very slow. You can then talk to Cornmarket about AVCs, if you want, and compare the two quotes. But you won't hear much positive comment on this site about Cornmarket and its (extortionate) fees.
Click to expand...

aj
 
Teacher-Buy back years or AVC

32 years old with 6 years teaching experience. Want to retire at 56 years. Which would be the better option-buy back years (when would I do this?) or make AVC's (what extra % of my income would you recommend?) Thanks.
 
Re: Teacher-Buy back years or AVC

Hi HK,
You have asked essentially the same question twice here before. How did you get on with the advice you got on those occasions?
aj
Primary Teacher & AVC's

Hippykitten said:
Teaching for 6 years (31) and am just making the standard pension contribution (about e160 a month). This seems quite a small amount to me as I would like to retire early. What would it cost me to set up and maintain AVC's? Can I get them from somewhere other than Cornmarket? Are there any other options pension options available to me? Thanks a mil.
Click to expand...

Teachers & Pensions
Hippykitten said:
I am 30 and this is my 5th year primary teaching (permanent). Feel bombarded by all this pension news. Have not got a clue about whole area. I am making the standard contribution (I think!). Would like to retire after 35 years service. What would I be entitled to on retirement? What are the advantages of making an AVC contribution or buying back years service?
A very confused Hippykitten.
Click to expand...
 
Re: Teacher-Buy back years or AVC

Well spotted! Have never been fully satisfied with responses. Would love to hear from someone in similar position.
 
HK
I have merged your two previous posts.
Perhaps you might let the people who posted answers to your questions what you found "less than satisfactory" about their answers?
aj
 
I am a primary teacher who took early retirement.I had contributed 10 years under the Dept.Notional Service scheme.Initially I had intended to work longer so my notional service was based on me retiring at 60 years with 2.5 years added on under the notional service.I avoided Cornmarket scheme even though I was in their salary protection scheme for 20 +years, I was just put off by the hard sales talk.
Obviously the sooner you join the Notional Service scheme the cheaper it will be.The percentage of salary deducted will be lower the younger you join.You just need to be definite about what year you intend to retire. I would have preferred to have had more than 10 years contributions.
 
Just a related question on this.

I am paying Superannuation and AVC (Cornmarket).

Do you automatically get tax relief on the above contributuons in your payslip?

Or do you have to contact Revenue or DES?
 
Yeah, the relief is granted in the tax calculations on your payslip.

I know it's a bit hackneyed but here goes yet again....

Are you really happy paying a 5% contribution charge to Cornmarket for each AVC payment despite having paid them the cost of their, ahem, advice up front when you took out the plan?

In addition, to the best of my knowledge the DES is still creaming off a further 1% as a handling charge.

So you're 6% down on every contribution to your AVC from the off.

There are numerous threads on AAM about execution-only only brokers who will organise a PRSA AVC for you for a once-off fee (some are now doing it for nothing as far as I know) and you'll get 100% allocation. Organising the tax relief yourself is simple.
 
Thanks Oysterman.

I am not happy with Cornmarket but I didn't know I could do a PRSA AVC.

Will look into it.

Pensions/AVC/NSP - not up to speed on these at all.
 
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