AVC's (In Civil Service)

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Frank8211

Registered User
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I work in the civil service and joined at 23. I took out the approved AVC recommended by the trade union a couple of years ago and have made block contributions at the end of each year. This is aimed at facilitating retirement at 60.
The pension entitlement is 50% of final pay. Am I correct in thinking that when I have made enough contributions to allow retirement at 60 I am also entitled to go on and make further contributions with a view to bringing pension up from the 50% in the normal scheme to two-thirds of final pay??? I know that this would be subject to the annual contributions are capped at percentages of salary depending on age.
 
Re: Avc

No you can't bring the pension above 50%.

(On a technicality, if you are paying full PAYE you can bring your pension slightly above 50% as the old age pension may be taken into account.)

But contact your provider to confirm.
 
Re: Avc

The objective of AVCs is to bridge any gap between your existing entitlement and the Reveue maximum. Typically Civil Servants get a maximum pension of 50% of Salary PLUS a tax free lump sum of 150% of Salary. In total pension terms this is equal to 2/3rds x Salary.
My understanding is that one cannot fund for "early retirement" as such. You can only pay AVCs if there is a shortfall in your benefits. If your normal retirement age is 65 and you joined service at 23, then you must be getting the maximum benefits at age 65 (if that is your normal retirement age). My reading of your position would be that you have little scope for AVCs, unless your 50% pension is reduced by the Social Welfare Pension (are you entitled to this ?), and the fact that your spouses pension is 50% of your pension (50% of 50%) as opposed to the 100% of 50% now permissable.
I suggest you check your capacity for AVCs.
 
Re: Avc

In relation to the Civil Service Pension, what you can actually get is dependant on when you joined the Civil Service. If you joined after 4/95 AVC can be effective even if you have 40 years service. The 50% of salary is inclusive of State Pension, pre 4/95 the max is 50% pension but you are not entitled to the OAP. AVC for post 4/95 can be made to fund for the difference of 50% inclusing of OAP and 50% plus OAP.
 
Re: Avc

There are 2 types of AVCs. For the Civil Service operated one you can only fund it up to the 50% of salery by the time you are 65.

Civil servants can also contribute tax free to a private AVC scheme that will allow you full (50%) pension by the time you are 60. If you fund this one and decide to work until you are 65 then I assume you will have to pay back taxes on it.
 
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