full CS pension but it is small

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4th estate

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Can I pick your brains please?

My sister is a civil servant. She will have full service on retirement at 60. However, this will be on the basis of a relatively low level salary on retirement. Therefore on the basis of 40/80ths of salary she will have approximately €22,000 pension or thereabouts. I know that is not bad, but could it be better?

Is she permitted to top up her pension by AVCs? I don't believe she will be entitled to the State Pension as she commenced employment pre 1995.

Just wondered.... thanks.
 
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Re: full CS pension but it is small!!

So she is earning approx 44k, and so will get 50% pension, i.e. 22k.

Yes, there may be scope to do AVCs to boost the pension.

See here for details on how public sector workers can use AVCs to enhance pensions:
 
Re: full CS pension but it is small!!

So she is earning approx 44k, and so will get 50% pension, i.e. 22k.
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I'm currently looking at setting up a pension. That one sounds pretty good! - Where can I set up one of those and is it just called a 'cs' pension? (Does this come under PRSA?)
 
Re: full CS pension but it is small!!

leghorn said:
I'm currently looking at setting up a pension. That one sounds pretty good! - Where can I set up one of those and is it just called a 'cs' pension? (Does this come under PRSA?)
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It actually is fairly good, then you crunch the numbers against most private sector pensions. My big mistake was not joining the civil service. For example, I am currently putting over €750 per month into my pension, as a percentage of salary I have been putting the same amount in for the last 10 years. When projected ('April' figures, less in today’s figures!!) forwards for another 30 years, it will buy me an annuity which in to days terms equates to just over €200 per week. So state pension of €210? + private pension of €200 = €21,310 per year. Your sisters pension will be index linked (read Benchmarked) to the current salary for the job. Mine will just increase at 3% per year.
 
Re: full CS pension but it is small!!

CS = civil service

Standard public sector DB pensions pay 50% of final salary + lump sum.

Many private sector DB schemes pay 66% of final salary, but no lump-sum.

However, many private schemes are now DC.
 
thanks to all who replied.

I still have a question..... Because my sis will be entitled to the maximum pension for her grade at retirement, is there a restriction in the CS pension scheme that disallows top ups when you are entitled to the maximum pension anyway? I checked out buying Notional Service, but it doesn't apply in her case as she has full service anyway. Hope I have made some sense here!
 
I can't answer your questions, but I hope you don't mind if I ask one - What grade was your sister at when she retired? I'm guessing it was EO or HEO, but perhaps you could clarify?
 
Complainer said:
I can't answer your questions, but I hope you don't mind if I ask one - What grade was your sister at when she retired? I'm guessing it was EO or HEO, but perhaps you could clarify?
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Seems about the max of the EO scale.

Don't forget that she will also get a lump sum of €66,000 based on the figures you say. If she invests that, then there will be an additional income of about €3,000 to add to the pension.

How old is she now? How she improves her income in retirement really depends on how much time she has to go. She can also work an extra year or two if she wants. It won't add to the pension, but it gives her more wriggel room to improve her savings.
 
Thank you all for taking the time to answer.
Perhaps I should have made the question clearer -

Can someone who is entitled to a FULL CS pension at 60 top it up to make the full CS pension larger?? I have tried to find out but cannot get an answer as anyone sis has approached has urged her to take out AVCs. I am not convinced that legally she is entitled to do this. I always thought that AVCs were designed to prop up a smaller pension in the private sector, or to ensure that a CS pension was the full amount available for the grade after 40 yrs service (where you may not have full service on retirement and are not buying years).

Oh my, am even more confused than ever!

BTW sis is an EO will retire in 2 years at 60 with full service and full pension + lump sum but is thinking can she top that up legally, with all the CS rules and regs!!

Thanks again all.
 
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