Health board and private pension?

L

ltf

Guest
I am working on a temporary contract with the Health Service Executive and paying into the pension scheme.

I have around €7,000 in a pension from my previous job and have to decide what to do with it. I know I can put it in a retirement bond, but if my contract is not renewed I will have to start a pension from scratch again.

Can I set up my own private pension with it or a PRSA, as well as having my healthboardpension? Will I still be able to get tax relief on the money I pay into it (up to the 20% limit)?
 
Yes you can set up your own PRSA AVC as an addition to your Health Board pension. As the existing fund is <€7,000 you can transfer it into your PRSA. Whether or not that's better for you than the other options warrants investigation.



Liam D Ferguson
www.prsacentre.com
 
Liam D.

On a similar point, can a permanent health service employee, in the pension scheme, now take out a private pension with tax relief? I read on your website about an AVC pension. Is this different to a normal pension and how? Thanks.

Slim
 
On a similar point, can a permanent health service employee, in the pension scheme, now take out a private pension with tax relief? I read on your website about an AVC pension. Is this different to a normal pension and how? Thanks.
Click to expand...

Yes such a person can start an AVC PRSA of their own choosing. Tax and PRSI has to be claimed rather than being automatic. Like all PRSAs, such arrangements are always "defined contribution", i.e. there is no guarantee of what pension or fund they will accumulate; the ultimate pension will depend on how much is in the fund when you retire.

Otherwise, it's the same as any other PRSA.
 
LD
Thanks for your response. I would like to be specific at this stage. I will have 40 yrs service at age 58 and will be entitled at age 60 to retire with full pension of 50% sal and lump sum of 150%. I am paying 6.5% superann & spouses and children contribution.

Would I benefit from taking out a private pension or AVC?

Slim
 
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