world201812
Registered User
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Hi all,
Am a member of the Single Service Pension scheme and looking at possibility of buying back years/service, or equivalent, as they call it referable amounts.
I have crunched the numbers and my options once I am out of two year vesting period is as follows, purchase the maximum permissible pension referable amounts, this would cost €44k approx. and then to purchase the maximum permissible lump sum referable amount it would cost 13k.
Take a hypothetical scenario whereby I was able to pay the 44k and the 13k, totalling 57k, what would be the ‘actual’ cost. I earn approx. 50k a year.
I pay tax at the higher band over 32k or whatever the threshold is, so would I in reality pay 40% of 57k, and get 60% ‘back, or have I got the wrong end of the stick?
To further complicate matters, I am not out of the vesting period, so I am wondering how does the ‘buy-back’ likelihood for two years previously link in with any AVC purchase too?
Basically, I am currently doing an October 31 AVC every year for the previous year, and get the tax relief on this, I presume I can’t do AVC plus Single Service Pension scheme ’buy-back’ for a given year? And claimed tax-relief on both? (In reality the numbers mean it would be near impossible for me to do both).
I presume if I bought back under the single scheme etc, I could in theory take this in tandem with early retirement from whatever age it is, and in tandem with a PRB associated with the main public service scheme?
Also, which is better to buy, additional pension per year or additional lumpsum?
Thoughts on above much appreciated.
Am a member of the Single Service Pension scheme and looking at possibility of buying back years/service, or equivalent, as they call it referable amounts.
I have crunched the numbers and my options once I am out of two year vesting period is as follows, purchase the maximum permissible pension referable amounts, this would cost €44k approx. and then to purchase the maximum permissible lump sum referable amount it would cost 13k.
Take a hypothetical scenario whereby I was able to pay the 44k and the 13k, totalling 57k, what would be the ‘actual’ cost. I earn approx. 50k a year.
I pay tax at the higher band over 32k or whatever the threshold is, so would I in reality pay 40% of 57k, and get 60% ‘back, or have I got the wrong end of the stick?
To further complicate matters, I am not out of the vesting period, so I am wondering how does the ‘buy-back’ likelihood for two years previously link in with any AVC purchase too?
Basically, I am currently doing an October 31 AVC every year for the previous year, and get the tax relief on this, I presume I can’t do AVC plus Single Service Pension scheme ’buy-back’ for a given year? And claimed tax-relief on both? (In reality the numbers mean it would be near impossible for me to do both).
I presume if I bought back under the single scheme etc, I could in theory take this in tandem with early retirement from whatever age it is, and in tandem with a PRB associated with the main public service scheme?
Also, which is better to buy, additional pension per year or additional lumpsum?
Thoughts on above much appreciated.