AVC PRSA and Retiring with Preserved Benefits

User1970

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Hi all

I have 2 questions re someone who is post 1995 and paying Class 'A' PRSI.

1. Is it possible to retire at 57 with a Preserved Benefit Pension starting at age 60 and accessing an AVC PRSA to draw down for the 3 years from 57 to 60?

2. In this scenario if the Tax Free Lump Sum from the Employer is paid at age 60 but an amount can also be taken from the AVC PRSA can this AVC PRSA Lump Sum be taken at age 57 or must it be claimed at age 60 in conjunction with the employer Lump Sum.

Hope the above makes sense and thanks in advance for all replies.
 
Is it possible to retire at 57 with a Preserved Benefit Pension starting at age 60 and accessing an AVC PRSA to draw down for the 3 years from 57 to 60?

No.

In this scenario if the Tax Free Lump Sum from the Employer is paid at age 60 but an amount can also be taken from the AVC PRSA can this AVC PRSA Lump Sum be taken at age 57

No.

The AVC must be accessed at the same time as the main scheme benefits.
 
Thank you so much for your prompt reply, not the answer I was hoping for but I'll keep planning and see what works.
 
If I retired at 57 on CNER is it possible to claim a supplementary Pension from age 60 to the state pension age?

Thanks again
 
If I retired at 57 on CNER is it possible to claim a supplementary Pension from age 60 to the state pension age?

If your "normal retirement age" is 60 (a pre-2004 entrant) you can claim a Supplementary Pension from 60 provided you meet the conditions - essentially not being in any insurable employment and not claiming, or being eligible to claim, a contributory Social Welfare benefit (Jobseeker's Benefit).
 
Thanks again Early Riser. The Pensions modeller makes no reference to eligibility for a Supplementary Pension at age 60 in the same way a 'Preserved Benefit' quote does so I wasn't sure why that was. Yes my 'normal retirement age' is 60.
 
The Pensions modeller makes no reference to eligibility for a Supplementary Pension at age 60 in the same way a 'Preserved Benefit' quote does so I wasn't sure why that was.

No, it doesn't for some reason, but the eligibility is the same whether you go with a preserved pension or with CNER.

Either way you should be aware the Supplementary Pension that may be payable is the difference between your coordinated pension (Class A PRSI) and what an equivalent uncoordinated pension would have paid (Salary *Service/80). The modeller always quotes the current rate of State Pension - this is the maximum that the Supplementary could reach and only applies to someone with full service retiring at, or after, normal retirement age.
 
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Thanks again Early Riser, I really appreciate the direct answers and information you have outlined.

I think what you are outlining is that If I do 2 quotes on the Pension Modeller, one as a Pre 95 and 1 as a post 95 with the other details remaining the same then the Supplementary Pension payable after age 60 will be the difference between the 2 quotes, rather than adding the full current rate of State Pension onto the Post 95 quote?

Hope I interpreted that correctly.
 
I think what you are outlining is that If I do 2 quotes on the Pension Modeller, one as a Pre 95 and 1 as a post 95 with the other details remaining the same then the Supplementary Pension payable after age 60 will be the difference between the 2 quotes, rather than adding the full current rate of State Pension onto the Post 95 quote?

Yes, that is correct. The only thing unclear is whether this figure would be subject to actuarial reduction if you had taken CNER at 57 rather than a preserved pension at 57. Bizarrely (in my view) some employers are applying an actuarial reduction even though it is not paid until 60. To be resolved, I suppose.
 
Thank you again Early Riser for helping me refine my thinking and clarify my options. It is much appreciated.
 
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