Apologies in advance if this was covered before.
I’m seeking some clarification on several points about AVC’s.
An employee aged 48 has a salary of 130kpa and is in a DC scheme. Their employer contributes 10% into the pension while the employee also contributes 10%.
1) As they are in the 40-49 category can the employee make extra AVC’s of max 15%?
2) Are the extra AVC’s capped at Revenue limit? So it’s 15% of 115k NOT 15% of 130k salary?
3) Employer contribution % is not factored in? If employer increased contributions from 10% to 20%, the employee can still make extra AVC’s of 15% here?
4) In monetary value, is 23k being paid into the pension now (employee 11.5k + employer 11.5k based on each paying 10% of 115k)?
Sorry if it’s too direct/simple or confusing for that matter!! (Hope not!) Thought I had a good handle on this but I’m not so sure…
Thanks
I’m seeking some clarification on several points about AVC’s.
An employee aged 48 has a salary of 130kpa and is in a DC scheme. Their employer contributes 10% into the pension while the employee also contributes 10%.
1) As they are in the 40-49 category can the employee make extra AVC’s of max 15%?
2) Are the extra AVC’s capped at Revenue limit? So it’s 15% of 115k NOT 15% of 130k salary?
3) Employer contribution % is not factored in? If employer increased contributions from 10% to 20%, the employee can still make extra AVC’s of 15% here?
4) In monetary value, is 23k being paid into the pension now (employee 11.5k + employer 11.5k based on each paying 10% of 115k)?
Sorry if it’s too direct/simple or confusing for that matter!! (Hope not!) Thought I had a good handle on this but I’m not so sure…
Thanks