# Public Service and Private Pension.



## Coolaboy (6 Dec 2011)

I have been paying into a private pension for the last 12 years but two years ago I started to work in the public service and therefore pay into the public service pension and will recieve a pension in time. Can I do this and pay into two pensions? Thanks.


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## Slim (6 Dec 2011)

Coolaboy said:


> I have been paying into a private pension for the last 12 years but two years ago I started to work in the public service and therefore pay into the public service pension and will recieve a pension in time. Can I do this and pay into two pensions? Thanks.


 
Yes, you may contribute a percentage of your income to pension schemes, depending on your age. This provision has survived the Budget today. Check Revenue site for exact rates, I think it's 25% between 40 - 50 yrs. If you are in the PS, you may be paying Superannuation at 6.5%, so if you are 45, you could pay another 18.5% to a private pension.


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## Coolaboy (6 Dec 2011)

Thanks Slim. One last question. I cant afford to pay into my Irish Life Pension so I am thinking of closing it down or paying a less monthly sum of fifty euro into it. If I do close it down hat happens to the money I have it in.?


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## oysterman (8 Dec 2011)

Coolaboy said:


> Thanks Slim. One last question. I cant afford to pay into my Irish Life Pension so I am thinking of closing it down or paying a less monthly sum of fifty euro into it. If I do close it down hat happens to the money I have it in.?


Continues to, eh, grow until retirement just as if you were still contributing.


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## christiehart (15 Dec 2011)

Yes, i think you can definitely do so. Private sector pension plans need to be valued using solvency funding because there is no guarantee that the employer will be around when their staff retire.


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## LDFerguson (17 Dec 2011)

Coolaboy said:


> I have been paying into a private pension for the last 12 years but two years ago I started to work in the public service and therefore pay into the public service pension and will recieve a pension in time. Can I do this and pay into two pensions? Thanks.


 
It's not that straightforward.  Assuming your public service income is the only income you have, you CAN continue to be part of the public service superannuation and contribute to a previous private pension...but you'd be mad to.  If you do, you won't be eligible for tax relief on the private pension contributions yet you may be required to pay on the proceeds.  

If you have disposable income which you want to use to improve your pension, you need an AVC or an AVC PRSA to qualify for the tax relief.  If your extra pension contribution is not one of those, it won't qualify.    

Liam D. Ferguson


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