AVCs & public servants (non-commercial semi-state organisation)

Can anyone tell me if employees in the Public Service can contribute to an AVC plan, in addition to the expensive scheme for the purchase of additional service? I work in a non-commercial semi-state organisation, but there is no AVC scheme operating. I will be a bit short on service come retirement so I'm particularly interested in contributing to an AVC to increase my potential lump-sum. Do I have to be part of an 'approved' scheme, or can I go ahead and start paying into one of my own choosing?

There is a facility in my employment to establish a PRSA with a financial organisation, but I'm not sure if my membership of my employer's Main Superannuation Scheme precludes me from joining a PRSA scheme.

Hi moneybag,

Have you asked anyone in your HR department? I know sometimes an informal inquiry like this can be difficult particularily in the smaller agencies. I find that the trade unions can be very helpful in this regard as well.

ajapale

moneybag said:

Can anyone tell me if employees in the Public Service can contribute to an AVC plan, in addition to the expensive scheme for the purchase of additional service? ]

Click to expand...

This 'expensive' scheme for the purchase of additional or notional service has been one of the great give-aways until recently. Rates for the purchase of additional service had been extremely favourable to public servants - however, as of 10th May 2005, the rates are no longer so favourable for public servants not already entered into contracts for purchasing notional service.

AVCs have offered a significantly lower return on investment in comparison to purchase of notional service. However, as most financials advisors are tied agents who earn commission on AVCs , this is rarely pointed out to public servants.

Yes, employees in the Public Service can contribute to an AVC plan, in addition to the scheme for the purchase of additional service. Whether this is a prudent investment depends on the individual concerned. In your case, it may make sense to invest in AVCs if you want to increase your potential lump-sum.

as of 10th May 2005, the rates are no longer so favourable for public servants not already entered into contracts for purchasing notional service.

Click to expand...

eliza, could you elaborate a little bit on that, please..?

I ask because I'm in a similar position (or at least I think I may be...?) I took up a permanent public sector post in 1993, having already clocked up a number of years' similar service on temporary contract, and - being a couple of years shy of a full pension entitlement at age 65 - was advised that I could make up the shortfall by applying to purchase back the missing years/months out of my earlier non-permanent service, simply by making the relevant payments retrospectively (i.e. on the basis of what I would have paid out of my pre-1993 earnings , which is obviously far cheaper than buying AVCs now, and sounds rather like the 'extremely favourable' conditions you mentioned...)

Firstly, is someone like me affected by the recent change you mention? Is 'notional' service the same thing as 'previous pensionable', here? You see, I started making formal written requests to do this some 5 years ago, in a circuit of very slow-moving correspondence between the personnel sections of my present employer, my former employer (UCD) and the Department (of Education). The thing just dragged on and on ever since, and whenever I politely enquire about it my current personnel/salaries officer just sighs apologetically and tells me not to worry - that I'm one of several cases and that they're pursuing it actively, etc., etc.

But your mention of public servants 'not already entered into contracts for purchasing notional service' has me worried!

Please post any further details you can... and thanks, in advance.

DrMoriarty said:

Firstly, is someone like me affected by the recent change you mention? Is 'notional' service the same thing as 'previous pensionable', here?

Click to expand...

Dr Moriarty, I haven't dealt with 'previously pensionable' so I am not in a position to answer if it is the same as purchasing additional years or notional service. I think the best I can do is to refer you to the following:

Revised Contribution Rates for Purchase of Notional Service -
http://www.education.ie/servlet/blobservlet/pen11_05.doc

Thanks, eliza.

This seems to apply only to primary and secondary schools, whereas I think third-level pensions come under a different scheme. But I'll chase it up again with the relevant parties - 5 years is a bit long to wait for an answer, even from the DES!

(I'd hate to walk under a bus before having my pension sorted out....)

It applies to third-level as well.

Ta. I'll chase it up!

Dr Moriarty,

I think the relevant DOE circular for third-level is PEN 09-05.

Hope this helps,

Eliza

I have read the previous discussion on AVCs and public servants with interest.

I too am someone working in Education who will have insufficient years on retirement for a full pension.

What is my best option to make up the deficit? Is the notional service scheme or AVCs my only option or can I start a private pension of some sort?