AVCs with full service

Conan

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992
The Revenue max pension for a D PRSI in the "integrated scheme " is 50% of gross salary. So since the scheme reduces the scheme pension by the State Pension ,you can use AVCs to add back the equivalent of the State Pension to get to 50% + State Pension.
"Last minute AVC" typically refers to a lump sum AVC invested in the last year before retirement.
 

Susie2017

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174
Just a query re 'Post 2004 people cannot take full benefits before 65, ie, 65 is their NRA' (took this from a post above). Can they still retire and take an actuarially reduced pension from aged 60 though ? If the answer is yes do they need grounds to to this or is it for illness ? Sorry if answer already given Im not clear on this. Is there any exception to where they could get 'preserved benefits' if that is the correct term. Also - anyone know the rules around 'professional added years' - i have come across this term but unsure what it means ?
 

Early Riser

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643
Post 2004s have a NRA of 65 but can take Cost Neutral Early Retirement from 55. Pre 2004 have an NRA of 60 and can take CNER from 50. CNER is actuarially reduced. Either can retire early with a preserved pension, ie, not taken until NRA and not actuarially reduced.
Certain professional grades requiring a professional qualification allow for professional added years. The idea being that time spent pursuing same may not allow enough service before NRA.

Illness not required for CNER. Ill health retirement is different and is not actuarially reduced.
 

Susie2017

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174
Thank you Early riser. Just to clarify - If you retire then at 62 as a post 2004 new entrant you can opt to 'preserve benefits' and that will give you the same pension as if you had worked til 65 BUT only at the age of 65. Is that correct ? That would unfortunately mean 3 years of no salary and no pension. This would be impossible for most people unless you had a second source of income or could you fund AVCs to fill this gap ? How much in an AVC would be needed to fund a pension of 40 k?. If you instead take an immediate actuarily reduced pension at 62 do you need approval from your public sector employer or do you just give them notice ? Are there any rules around professional added years i.e are they only added if you stay til NRA or can you get them if you go at 62. Also i presume retirement on ill health grounds would require certification of being unfit for work by occupational health doctors.
 

Early Riser

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643
Hi Susie
As a post 2004 if you retire at age 62 with a preserved pension you get your full (earned) Occ Pension from 65, eg, if you have 30 years service at 62 you will get a pension based on 30 years of service at 65. AVCs would not fill this gap as you can only draw down from the AVC fund at the same time as the Occ Pension - in this case 65. So no income - You could apply for Jobseekers Benefit - payable for 9 months.

You do not need approval for CNER - just normal notification. Give them some time to calculate your entitlements. If you have an AVC you have to draw it down at this time also, eg, to top up the lump sum and, if anything remaining, set up an ARF.

Yes, ill-health retirement will need to be certified and approved. You might not necessarily have to be seen by the Occ Health dept. It would depend on your condition/diagnosis and your Consultant's report.

The Professional Added Years scheme varies depending on when you originally joined the PS. I don't recall the details but there would certainly be deductions/restrictions in cases of CNER - or, indeed, taking a preserved pension. It is only available for certain professional grades.
 
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